Kotak Mahindra Bank says it has not submitted financial bid for IDBI Bank stake sale

Kotak Mahindra Bank has clarified that it has not submitted a financial bid in the ongoing disinvestment process for IDBI Bank, countering earlier media reports that named it as one of the bidders.

In a statement, Kotak Mahindra Bank said it “has not submitted a financial bid as part of the disinvestment process related to IDBI Bank.”

The clarification came after a media report suggested that the private lender was participating in the stake sale.

The statement also follows a Reuters report that said the planned sale of state-owned IDBI Bank had attracted bids from Canadian investment group Fairfax Financial, Emirates NBD, and Kotak Mahindra Bank, citing three unnamed sources familiar with the matter.

The Indian government and Life Insurance Corporation of India (LIC) together plan to sell a 60.7% stake in IDBI Bank as part of a broader privatisation programme. The government currently holds 45.48% of the bank, while LIC owns 49.24%.

According to Reuters, Fairfax Financial — which already controls a majority stake in CSB Bank — may seek to merge IDBI Bank with CSB Bank if it wins the bid. The report also said Emirates NBD had placed a bid, but these details remain unofficial.

The government first announced the sale of IDBI Bank in 2022 and has said it aims to finalise the transaction by March 31, 2026. The successful bidder will have the option to rename the bank.

IDBI Bank required a rescue by LIC in 2019 after a sharp rise in bad loans. Its shares have risen about 26% over the past year amid expectations of a sale.