With Kotak Bank not in IDBI fray, eyes on foreign suitors

MUMBAI: Kotak Bank’s statement that it is not in the race to acquire IDBI Bank would mean that the success of govt’s plan to sell IDBI Bank will depend upon the interest of foreign bidders. Kotak Bank, while never an official contender, was long seen as a potential acquirer given the bank’s high capital adequacy ratio, limited branch network and growth ambitions. On Saturday, the bank said it has not submitted a financial bid for IDBI Bank, denying media reports that named it among contenders in govt’s divestment of the state-owned lender. With the bank ruling itself out, attention has shifted to remaining bidders, including Fairfax India and Emirates NBD, as govt targets completion of the sale in FY26. Sources said that one of the reasons for the private lender not showing interest was the valuation. IDBI Bank’s share price has risen 40% in the last 12 months whereas Kotak’s shares are up only 8%. In a stock exchange filing, Kotak Bank said it was responding to news reports, which suggested the bank would place a financial bid for IDBI Bank.