The Reserve Bank of India has completed its review of potential buyers for a majority stake in IDBI Bank, approving Fairfax Financial Holdings, Emirates NBD and Kotak Mahindra Bank as bidders, three sources aware of the development said on Thursday.
The Indian government, which owns 45.48% in IDBI Bank, and state-owned Life Insurance Corp of India which holds 49.24%, together plan to sell 60.7% of the lender. The sale process was first announced in 2022.
The sources did not wish to be identified as the discussions are not public. The finance ministry, RBI, Fairfax Financial Holdings, Emirates NBD and Kotak Mahindra Bank did not immediately reply to Reuters emails seeking comments.
The bidders are talking to the Indian government and will get access to IDBI Bank's private data after evaluation, one of the sources said.
Reuters had earlier reported interested buyers include Emirates NBD and Canadian billionaire Prem Watsa.
Toronto-based Fairfax India Holdings is backed by Canadian billionaire Prem Watsa and invests in public as well as private equity securities and debt instruments in India.
Emirates NBD Group offers financial services with operations in UAE, India and Saudi Arabia, among others.
The government would likely open bids for the lender before the end of the financial year, Tuhin Kanta Pandey, the country's secretary responsible for the stake sale, had said last week.