The Government of India and the country’s largest insurance company LIC are going to sell their stake in IDBI Bank. And the names of the three potential buyers in the race to buy this stake have now come to the fore. Fairfax Financial Holdings, Emirates NBD and Kotak Mahindra Bank are ahead in this race. The regulator of the banking sector has completed its review of potential buyers buying a majority stake as bidders.
This information has come to the fore quoting Reuters. Sources, without revealing their identity, said that this discussion is not yet in the public domain. The Ministry of Finance, Fairfax Financial Holding, Emirates NBD and Kotak Mahindra Bank have not responded when asked for comment in this regard. The government is in talks with those who have shown interest in buying IDBI Bank and on completion of the evaluation, they will get access to the private data of IDBI Bank.
The Government of India has a 45.48 percent stake in IDBI Bank while LIC has a 49.24 percent stake. Both the government and LIC together are preparing to sell 60.7 percent stake in IDBI Bank.
Toronto-based Fairfax India Holdings is a company backed by Canadian billionaire Prem Watsa, which invests in securities of private as well as private companies in India as well as debt instruments. Emirates NBD offers financial services from UAE to India and Saudi Arabia. Kotak Mahindra Bank is one of the leading private banks of the country. By the end of this financial year, the government can invite bids in IDBI Bank.
In today’s trading, the stock of IDBI Bank closed at Rs 100.01 with a decline of 3.54 percent.
