The Indian government does not expect to conclude the sale of IDBI Bank by the end of the financial year on March 31, 2024, a top finance ministry official told reporters. The federal government, which owns 45.48% of IDBI Bank, and state-owned Life Insurance Corp of India, which holds 49.24%, together plan to sell 60.7% of the lender. Kotak Mahindra Bank, Canadian billionaire Prem Watsa-backed CSB Bank and Emirates NBD have submitted initial bids for a majority stake in IDBI Bank and the Reserve Bank of India (RBI) has been vetting bidders since April.
India's central bank is expected to accelerate a key process of vetting IDBI Bank's potential buyers and complete it by October end, helping speed up the sale of a majority stake in the lender, two government sources said. The federal government, which owns 45.48% of IDBI Bank, and the state-owned Life Insurance Corp of India, which holds 49.24%, together plan to sell 60.7% of the lender. The Reserve Bank of India (RBI) began the vetting process known as 'fit and proper criteria' in April, after Kotak Mahindra Bank, the Prem Watsa-backed CSB Bank and Emirates NBD submitted their initial bid to acquire a majority stake in IDBI Bank.