New Delhi [India], March 13 : The government's efforts to sell a majority stake in IDBI Bank are likely to be scrapped, with both bids received below the reserve price, according to sources.
Fairfax Financial Holdings Ltd and Emirates NBD were the two bidders for the IDBI Bank sale, but their offers were reportedly lower than the government's reserved price.
The IDBI Bank stake sale process has been ongoing for nearly three years.
In 2023, the government and the Life Insurance Corporation (LIC) decided to offload a little over 30 per cent each in IDBI Bank. They issued a preliminary information memorandum, inviting EoIs for an aggregate 60.72 per cent stake, along with management control.
The Government of India and LIC together own more than 94 per cent of the equity of IDBI Bank (government 45.48 per cent, LIC 49.24 per cent.
The Mumbai-headquartered bank returned to profitability in recent years. It reported a 1.4% rise in its standalone net profit to Rs 1,935.45 crore in the October-December quarter of 2025, compared to Rs 1,908.27 crore in the same quarter of the previous year.
The lender's net interest income (NII) declined 24% to Rs 3,209.5 crore, compared to Rs 4,228.2 crore in the same quarter of the previous year.
The bank reported a drop in net non-performing assets (NPA) from Rs 474.2 crore in the previous quarter to Rs 425.3 crore in the quarter ended on December 31, 2025.
In May 2021, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, gave its in-principle approval for strategic disinvestment along with the transfer of management control in IDBI Bank.
It was expected that the strategic buyer would infuse funds, new technology and best management practices for optimal development of business potential and growth of IDBI Bank Ltd and would generate more business without any dependence on LIC and government assistance or funds.