Kotak Mahindra Bank is said to have concluded its due diligence process to acquire the government’s stake in IDBI Bank. The due diligence process involves reviewing confidential information such as borrower data, exposure, and loan provisions to assess the bank’s financial health.
Two global financial institutions — Oaktree Capital Management and Fairfax Financial — have already completed their due diligence of the bank. According to sources, Emirates NBD may no longer be in the race after its recent acquisition of RBL Bank. Fairfax Financial already owns a 40% stake in CSB Bank.
As per sources, Kotak Bank could become a front runner in the race for IDBI Bank, as it is the only domestic contender to buy the government’s stake. While the government and Life Insurance Corporation (LIC) hold 94% in the bank, the transaction could involve acquiring a majority stake of up to 60.72%.
Reports suggest that the government aims to finalise the winning bidder by the end of FY26, with the deal potentially valuing IDBI Bank around $8-10 billion. The bank is in advanced discussions with government-appointed advisers, with final financial bids expected to be invited in the coming quarter.
However, there are speculations as to why Kotak Bank is purchasing a stake in IDBI Bank. Let’s see what happens in future.
