India will press ahead with the delayed sale of a majority stake in IDBI Bank after central bank clearance, opening bids for the lender before the end of the financial year, a top finance ministry official said on Friday.
The Reserve Bank of India has indicated completion of its fit and proper vetting of potential bidders of IDBI Bank, said Tuhin Kanta Pandey, the country's secretary responsible for the stake sale.
Shares in IDBI Bank rose about 5% on the news.
The "fit and proper" clearance by the central bank was the key road block that had delayed the stake sale.
The 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.
In the next phase the Indian government will allow potential bidders to access IDBI Bank's private data in August, Pandey said.
Reuters have reported interested buyers include Emirates NBD and Canadian billionaire Prem Watsa.
