IDBI Bank majority stake sale likely post 2024 elections: Report

government is expected to conclude sale of its majority stake in IDBI Bank after country's general elections in mid-2024, Reuters reported quoting three sources familiar with matter. process, initiated in October 2022, faces delays as Reserve Bank of India is yet to complete "fit and proper" vetting on interested bidders, including Emirates NBD and Canian billionaire Prem Watsa.

bidders will proceed with ir due diligence and financial bids following completion of vetting process. final agreement for purchase of 60.7 per cent of IDBI and regulatory approvals will be formalised only post-general elections, first source noted. India's general elections are anticipated by May next year, and governments typically refrain from major policy decisions just ahe of polls.

A government official mentioned last week that a sale was unlikely in this financial year, jeopardising government's target of raising Rs 51,000 crore through share sales. RBI has been urged to expedite vetting process, but involvement of foreign entities in acquiring lender has contributed to delay, as per two sources mentioned in Reuters report.

Upon receiving central bank's clearance, potential bidders will require a minimum of two months to assess IDBI Bank's financials and ditional time to finalise ir bids, stated third source. government, owning 45.48 per cent in IDBI Bank, and state-owned Life Insurance Corp of India, with a 49.24 per cent stake, collectively plan to sell 60.7 per cent of lender.

On Tuesday, government canceled bidding process for hiring an asset valuer after receiving only one bid. bidder's conditions were deemed unacceptable, prompting a fresh initiation of process, as per second source.

(With Reuters inputs.)