Kotak Mahindra Bank Denies Submitting Financial Bid for IDBI Bank Stake Sale

Kotak Mahindra Bank on Saturday clarified in an exchange filing that it has not submitted a financial bid for the proposed stake sale in IDBI Bank, countering a media report that had listed the lender among potential bidders. The clarification follows a report by Reuters suggesting that the private sector bank was in the race to acquire a stake in the state-owned lender.

The Indian government has confirmed receiving bids for IDBI Bank as part of its strategic disinvestment plan, though specific details of the bidders have not been disclosed. Divestment Secretary Arunish Chawla stated on Friday that the process is progressing, without naming participating entities or commenting on individual reports.

Under the proposed transaction, the government and the state-owned Life Insurance Corporation of India (LIC) plan to jointly divest a 60.7% stake in IDBI Bank. The government currently holds 45.48% of the bank, while LIC owns 49.24%, making the sale a significant component of India’s broader privatization programme aimed at unlocking value from public sector assets.

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