An IDBI Bank branch in New Delhi. The bids for IDBI are expected to be called before the close of the financial year.
Reuters/Adnan Abidi
Dubai’s largest bank by assets, Emirates NBD, has been shortlisted among three potential buyers vying for a majority stake in India’s IDBI Bank. The Indian government plans to privatize the lender, according to local media reports.
Alongside Emirates NBD, Canada’s Fairfax Financial Holdings and India’s Kotak Mahindra Bank have also received clearance from the Reserve Bank of India, as reported by CNBC-TV18. However, Kotak Mahindra Bank may not pursue the acquisition, leaving Emirates NBD as a strong contender with a potentially “decent bid.”
The government and the state-backed Life Insurance Corporation currently hold approximately 95% of IDBI Bank’s shares and plan to sell a 61% stake, including management control. The sale process is expected to conclude before the end of the financial year in March 2025.
Emirates NBD’s presence in India includes three branches with assets amounting to Rs631 billion ($753 million) as of last year. This acquisition aligns with the bank’s expansion strategy, potentially giving it a significant foothold in the Indian market.
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