The process of selling IDBI Bank has been expedited. For this, bidders have been invited to submit applications. According to people related to the matter, Fairfax Financial Holdings, Emirates NBD and Kotak Mahindra Bank Limited are leading the way in this race of buyers. It is believed that they have made a place for themselves in the final list. Not only this, these investors have also complied with the RBI standards. They have successfully cleared the due and appropriate checks of the regulator, moving on to the next stage of the bidding process.
The shortlisted investors will soon be linked to the further process so that everything can be completed on time. Only after this will they be able to submit their final bids. According to experts related to the matter, Fairfax Financial, owned by Prem Vats, already has a strong presence in the financial services sector in India. Fairfax Financial currently holds a 40% stake in CSB Bank, while it also holds a 15.22% stake in IIFL Finance. In such a situation, there is a possibility that it may also get a stake in IDBI Bank.
The Kotak Mahindra-Emirates NBD dilemma
While Fairfax’s claim seems to be the strongest among IDBI bidders, Kotak Mahindra Bank and Emirates NBD have their own challenges. Kotak Mahindra Bank, which appointed Ashok Vaswani as MD and CEO in January. On April 24, the RBI announced new restrictions on Kotak, preventing it from adding customers through digital means. The regulator also banned the lender from attracting new credit card customers. In such a situation, the bank itself is going through the process of putting its things in order. In the meantime, this merger step may be a challenge. While Emirates NBD provides services only to those companies that are active in India and the Middle East. The UAE-based lender would like to expand its presence in India by buying IDBI Bank.
I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,
