India to Scrap Bids for Majority Stake in IDBI Bank, Source Says India will abandon the bids it received for a majority stake in IDBI Bank, according to a government source, as the offers fell below the minimum price the government had set for the sale. The decision comes after the Indian government and the state-owned Life Insurance Corporation of India (LIC) initiated a process to sell 60.7% of the bank in 2022. The government currently owns 45.48% of IDBI Bank, while LIC holds 49.24%. The sale process was halted because the bids received were deemed insufficient, with the source stating that the offers did not meet the so-called reserve price, or the minimum sale price, established for the transaction. Bloomberg News was the first to report the development. The government may restart the process when market interest in acquiring the bank improves and there is stronger demand from potential buyers, the source added. IDBI Bank and the finance ministry did not immediately respond to a Reuters request for comment outside regular business hours. Reuters had previously reported that the planned sale of IDBI Bank had attracted interest from Canadian investment group Fairfax Financial and Dubai-based Emirates NBD. However, the tepid response from foreign investors contrasts with recent strong bids from international entities, such as Emirates NBD’s $3 billion purchase of a 60% stake in RBL Bank and Sumitomo Mitsui Banking Corp’s acquisition of a 24% stake in Yes Bank. The government’s decision to abandon the sale highlights the challenges in securing a satisfactory price for state-owned assets, particularly in a market where investor appetite for such deals remains limited.#india #idbi_bank #life_insurance_corporation_of_india #emirates_nbd #fairfax_financial
