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Iran war has driven up India's fertiliser import costs and fuel subsidies
Analysts worry government may miss fiscal deficit target
$3.3 billion LIC share sale is latest divestment success
Sale of IDBI Bank stake could add $2.5 billion to state coffers, source says
Dividend receipts already above annual target
By Nikunj Ohri
NEW DELHI, Aug 7 (Reuters) - India expects to exceed this fiscal year's goal of raising 800 billion rupees ($8.4 billion) through the sale of stakes in state-run firms and other asset monetisation methods, government sources said, helping public finances strained by the Middle East conflict.
The U.S.-Israeli war on Iran has driven up fertiliser import costs and fuel subsidies, sparking concern that the government could fall short of its budget goals. India has often missed its target for divestments and asset monetisation in recent years.
The government this week completed the sale of shares worth 315.5 billion rupees ($3.3 billion) in state-owned Life Insurance Corporation (LIC), its biggest divestment in years. Combined with sales of shares in firms such as Coal India and Indian Railway Finance Corp, more than $5.5 billion has been raised to date.
According to one of the sources, the long-delayed sale of the government's stake in IDBI Bank should also conclude this fiscal year, potentially adding $2.5 billion to state coffers.
Moreover, Finance Minister Nirmala Sitharaman has given quarterly targets to the ministry's divestment department to boost stake-sale receipts, the second source said.
The sources were not authorised to speak to media and declined to be identified. India's finance ministry did not respond to a request for comment.
The government launched an ambitious privatisation drive in 2021, but progress has been slower than initially envisaged, with only a handful of strategic sales completed.
Officials have increasingly relied on sales of smaller stakes in listed state-run companies, which are easier to execute and carry lower political and regulatory risk, the first source said.
FISCAL PRESSURES
Increased oil import costs for India, the world's third-largest crude importer, have raised concerns about a possible widening of the fiscal deficit and current account gap.
The government is targeting a fiscal deficit of 4.3% of GDP this fiscal year. But a 37% jump in subsidy spending for the April-June first quarter from the same period a year earlier has led some analysts to warn that the government will fail to meet its goal.
Overall government expenditure for the quarter rose 11%, government data shows.
The government may need additional measures to meet its deficit target, said N.R. Bhanumurthy, director of the Madras School of Economics.
"Compared with previous years, the rise in divestment receipts is a positive trend. However, the government will need to mobilise more revenue this year, as fuel tax cuts alone have cost the exchequer more than 1 trillion rupees," he said.
Sitharaman said last month there were no immediate plans to revise budget estimates.
DIVIDEND BOOST
Dividends received by the government from the Reserve Bank of India, state-run banks and financial institutions have already hit 3.24 trillion rupees for April 1 to August 5, exceeding the 3.16 trillion rupees initially expected for the whole of this fiscal year.
The RBI contributed a record 2.87 trillion rupees. The government expects non-financial state-run companies to pay 750 billion rupees in dividends this fiscal year. It has received 25.5 billion rupees so far.
There have been no major asset monetisation announcements yet. Asset monetisation can include selling land or creating infrastructure investment trusts that hold government-owned infrastructure assets.
($1 = 95.1650 Indian rupees)
(Reporting by Nikunj Ohri; Editing by Ira Dugal and Edwina Gibbs)
(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))
Iran war has driven up India's fertiliser import costs and fuel subsidies
Analysts worry government may miss fiscal deficit target
$3.3 billion LIC share sale is latest divestment success
Sale of IDBI Bank stake could add $2.5 billion to state coffers, source says
Dividend receipts already above annual target
By Nikunj Ohri
NEW DELHI, Aug 7 (Reuters) - India expects to exceed this fiscal year's goal of raising 800 billion rupees ($8.4 billion) through the sale of stakes in state-run firms and other asset monetisation methods, government sources said, helping public finances strained by the Middle East conflict.
The U.S.-Israeli war on Iran has driven up fertiliser import costs and fuel subsidies, sparking concern that the government could fall short of its budget goals. India has often missed its target for divestments and asset monetisation in recent years.
The government this week completed the sale of shares worth 315.5 billion rupees ($3.3 billion) in state-owned Life Insurance Corporation (LIC), its biggest divestment in years. Combined with sales of shares in firms such as Coal India and Indian Railway Finance Corp, more than $5.5 billion has been raised to date.
According to one of the sources, the long-delayed sale of the government's stake in IDBI Bank should also conclude this fiscal year, potentially adding $2.5 billion to state coffers.
Moreover, Finance Minister Nirmala Sitharaman has given quarterly targets to the ministry's divestment department to boost stake-sale receipts, the second source said.
The sources were not authorised to speak to media and declined to be identified. India's finance ministry did not respond to a request for comment.
The government launched an ambitious privatisation drive in 2021, but progress has been slower than initially envisaged, with only a handful of strategic sales completed.
Officials have increasingly relied on sales of smaller stakes in listed state-run companies, which are easier to execute and carry lower political and regulatory risk, the first source said.
FISCAL PRESSURES
Increased oil import costs for India, the world's third-largest crude importer, have raised concerns about a possible widening of the fiscal deficit and current account gap.
The government is targeting a fiscal deficit of 4.3% of GDP this fiscal year. But a 37% jump in subsidy spending for the April-June first quarter from the same period a year earlier has led some analysts to warn that the government will fail to meet its goal.
Overall government expenditure for the quarter rose 11%, government data shows.
The government may need additional measures to meet its deficit target, said N.R. Bhanumurthy, director of the Madras School of Economics.
"Compared with previous years, the rise in divestment receipts is a positive trend. However, the government will need to mobilise more revenue this year, as fuel tax cuts alone have cost the exchequer more than 1 trillion rupees," he said.
Sitharaman said last month there were no immediate plans to revise budget estimates.
DIVIDEND BOOST
Dividends received by the government from the Reserve Bank of India, state-run banks and financial institutions have already hit 3.24 trillion rupees for April 1 to August 5, exceeding the 3.16 trillion rupees initially expected for the whole of this fiscal year.
The RBI contributed a record 2.87 trillion rupees. The government expects non-financial state-run companies to pay 750 billion rupees in dividends this fiscal year. It has received 25.5 billion rupees so far.
There have been no major asset monetisation announcements yet. Asset monetisation can include selling land or creating infrastructure investment trusts that hold government-owned infrastructure assets.
($1 = 95.1650 Indian rupees)
(Reporting by Nikunj Ohri; Editing by Ira Dugal and Edwina Gibbs)
(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, Aug 5 (Reuters Breakingviews) - India's toughest fiscal challenge in years will bring out New Delhi's dealmaking side. The government is raising 314 billion rupees, or $3.3 billion, by trimming its stake in Life Insurance Corporation LIFI.NS. The proceeds will help shore up the war-battered public balance sheet and inspire similar sales.
New Delhi is offering up to a 6.5% stake in LIC to institutions and retail investors at 382 rupees a share. The deal values the country's largest life insurer by premiums at an 11% discount to the stock's last-traded price, which isn't too steep considering volatile market conditions and fierce competition in the sector.
The latest divestment is part of a government push to raise 800 billion rupees in capital for the fiscal year ending March 2027. Along with share sales in other companies like $27 billion miner Coal India COAL.NS and hydropower producer NHPC NHPC.NS, combined proceeds are on track to top 526 billion rupees, roughly two-thirds of the 12-month goal.
As war rages on in the Middle East, that will offer some fiscal cushion to Prime Minister Narendra Modi's government, which is grappling with rising oil prices. Revenue collections have turned lacklustre too, after cuts to indirect tax rates. Concern that his administration will breach a fiscal deficit target of 4.3% of GDP for the current year is mounting. Higher fertiliser subsidies and debt servicing costs may ultimately widen the deficit by an additional 0.3% of GDP, analysts at ANZ warn.
That risk should prompt officials to accelerate deals. Last year, Goldman Sachs was hired to manage stake sales in four state-owned lenders, including narrowly held UCO Bank UCBK.NS and Punjab and Sind Bank. The government could also revive the process to find a new owner for LIC-backed IDBI Bank IDBI.NS, which received fresh bids from Canada's Fairfax and Abu Dhabi's Emirates NBD last month, per a Reuters report citing sources.
Fiscal pressure will force New Delhi to be more aggressive and creative.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
The government of India on August 4 launched an offer for up to 822 million of its shares in Life Insurance Corporation, representing an up to 6.5% stake in the insurer.
The offer priced at 382 rupees ($4.01) per share, an 11% discount to their last-traded price, opened for bidding by institutions on August 4 and will accept retail subscriptions on August 5.
(Editing by Robyn Mak; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, Aug 5 (Reuters Breakingviews) - India's toughest fiscal challenge in years will bring out New Delhi's dealmaking side. The government is raising 314 billion rupees, or $3.3 billion, by trimming its stake in Life Insurance Corporation LIFI.NS. The proceeds will help shore up the war-battered public balance sheet and inspire similar sales.
New Delhi is offering up to a 6.5% stake in LIC to institutions and retail investors at 382 rupees a share. The deal values the country's largest life insurer by premiums at an 11% discount to the stock's last-traded price, which isn't too steep considering volatile market conditions and fierce competition in the sector.
The latest divestment is part of a government push to raise 800 billion rupees in capital for the fiscal year ending March 2027. Along with share sales in other companies like $27 billion miner Coal India COAL.NS and hydropower producer NHPC NHPC.NS, combined proceeds are on track to top 526 billion rupees, roughly two-thirds of the 12-month goal.
As war rages on in the Middle East, that will offer some fiscal cushion to Prime Minister Narendra Modi's government, which is grappling with rising oil prices. Revenue collections have turned lacklustre too, after cuts to indirect tax rates. Concern that his administration will breach a fiscal deficit target of 4.3% of GDP for the current year is mounting. Higher fertiliser subsidies and debt servicing costs may ultimately widen the deficit by an additional 0.3% of GDP, analysts at ANZ warn.
That risk should prompt officials to accelerate deals. Last year, Goldman Sachs was hired to manage stake sales in four state-owned lenders, including narrowly held UCO Bank UCBK.NS and Punjab and Sind Bank. The government could also revive the process to find a new owner for LIC-backed IDBI Bank IDBI.NS, which received fresh bids from Canada's Fairfax and Abu Dhabi's Emirates NBD last month, per a Reuters report citing sources.
Fiscal pressure will force New Delhi to be more aggressive and creative.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
The government of India on August 4 launched an offer for up to 822 million of its shares in Life Insurance Corporation, representing an up to 6.5% stake in the insurer.
The offer priced at 382 rupees ($4.01) per share, an 11% discount to their last-traded price, opened for bidding by institutions on August 4 and will accept retail subscriptions on August 5.
(Editing by Robyn Mak; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
** Shares of India's IDBI Bank IDBI.NS rise as much as 3.9% to 89.94 rupees; last up 1.3%
** IDBI set for fifth straight day of gains, if trend holds
** Canada's Fairfax Financial FFH.TO set to acquire Indian govt's stake in IDBI Bank for $5.5 bln, reported Economic Times on Wednesday
** Stake sale in co was revived on Tuesday after Dubai's Emirates NBD ENBD.DU and Fairfax revised their bids
** More than 30.5 mln shares change hands by 11:20 a.m. vs 30-day avg of 24.7 mln shares
** YTD, IDBI down 15%
(Reporting by Abhirami G in Bengaluru)
** Shares of India's IDBI Bank IDBI.NS rise as much as 3.9% to 89.94 rupees; last up 1.3%
** IDBI set for fifth straight day of gains, if trend holds
** Canada's Fairfax Financial FFH.TO set to acquire Indian govt's stake in IDBI Bank for $5.5 bln, reported Economic Times on Wednesday
** Stake sale in co was revived on Tuesday after Dubai's Emirates NBD ENBD.DU and Fairfax revised their bids
** More than 30.5 mln shares change hands by 11:20 a.m. vs 30-day avg of 24.7 mln shares
** YTD, IDBI down 15%
(Reporting by Abhirami G in Bengaluru)
Updates with statements from IDBI, Emirates in paragraph 4, market cap in paragraph 8 after close
By Nikunj Ohri
July 14 (Reuters) - India has received revised bids from Canada's Fairfax Financial FFH.TO and Dubai's Emirates NBD ENBD.DU for the sale of its majority stake in IDBI Bank IDBI.NS, two sources said, reviving a transaction stalled earlier this year over valuation expectations.
India's federal government and state-run Life Insurance Corp of India LIFI.NS are selling a combined 60.7% stake in IDBI Bank, with the transaction expected to be completed in a month, one of the sources said on Tuesday.
The sale process was stalled earlier this year after bids submitted in March by Fairfax and Emirates fell short of the government's expectations.
IDBI Bank said in a statement to exchanges on Tuesday that it cannot confirm or deny reports about Fairfax Financial's offer and has received no government communication on the ongoing disinvestment process. Emirates NBD declined to comment.
The revised bids are being evaluated, and a top panel of bureaucrats met on Monday to discuss the stake sale, a third source said. The Indian government owns 45.48% of IDBI Bank, while LIC holds 49.24%.
Fairfax is the frontrunner to acquire the bank and is in conversation with the government while Emirates is not actively pursuing the deal after having acquired another Indian lender last year, one of the two sources and another source said.
Details of the revised bids and valuation of the bank could not be immediately ascertained. Shares of IDBI Bank closed 2.87% higher at 86.54 rupees, giving the lender a market capitalisation of 930.5 billion rupees.($9.67 billion)
The finance ministry, LIC and Fairfax did not immediately respond to requests for comment. The sources spoke on condition of anonymity to discuss sensitive matters.
The revised bids come amid growing foreign investor interest in India's financial sector.
Last year, Emirates NBD acquired a stake in private lender RBL Bank RATB.NS for $3 billion, while Japan's MUFG 8306.T bought a 20% stake in non-bank lender Shriram Finance SHMF.NS for $4.4 billion, marking some of the largest foreign investments in India's banking industry.
To draw similar interest in state-run banks, India also plans to raise the foreign direct investment limit in them to 49% from 20% presently.
REVIVED SALE PROCESS
IDBI Bank's stake sale process was initiated in 2022 and has since dragged on due to regulatory and procedural approvals.
By March 2026, when the process neared its completion, it stalled due to high government valuation expectations and weak investor appetite amid the Middle East conflict.
Concerns over pension and gratuity liabilities also weighed on bids, Reuters had reported.
($1 = 96.2000 Indian rupees)
(Reporting by Nikunj Ohri, Additional reporting by Ira Dugal and Gopika Gopakumar; Writing by Kashish Tandon; Editing by Mrigank Dhaniwala, Sonia Cheema and Muralikumar Anantharaman)
(([email protected]; 8800437922;))
Updates with statements from IDBI, Emirates in paragraph 4, market cap in paragraph 8 after close
By Nikunj Ohri
July 14 (Reuters) - India has received revised bids from Canada's Fairfax Financial FFH.TO and Dubai's Emirates NBD ENBD.DU for the sale of its majority stake in IDBI Bank IDBI.NS, two sources said, reviving a transaction stalled earlier this year over valuation expectations.
India's federal government and state-run Life Insurance Corp of India LIFI.NS are selling a combined 60.7% stake in IDBI Bank, with the transaction expected to be completed in a month, one of the sources said on Tuesday.
The sale process was stalled earlier this year after bids submitted in March by Fairfax and Emirates fell short of the government's expectations.
IDBI Bank said in a statement to exchanges on Tuesday that it cannot confirm or deny reports about Fairfax Financial's offer and has received no government communication on the ongoing disinvestment process. Emirates NBD declined to comment.
The revised bids are being evaluated, and a top panel of bureaucrats met on Monday to discuss the stake sale, a third source said. The Indian government owns 45.48% of IDBI Bank, while LIC holds 49.24%.
Fairfax is the frontrunner to acquire the bank and is in conversation with the government while Emirates is not actively pursuing the deal after having acquired another Indian lender last year, one of the two sources and another source said.
Details of the revised bids and valuation of the bank could not be immediately ascertained. Shares of IDBI Bank closed 2.87% higher at 86.54 rupees, giving the lender a market capitalisation of 930.5 billion rupees.($9.67 billion)
The finance ministry, LIC and Fairfax did not immediately respond to requests for comment. The sources spoke on condition of anonymity to discuss sensitive matters.
The revised bids come amid growing foreign investor interest in India's financial sector.
Last year, Emirates NBD acquired a stake in private lender RBL Bank RATB.NS for $3 billion, while Japan's MUFG 8306.T bought a 20% stake in non-bank lender Shriram Finance SHMF.NS for $4.4 billion, marking some of the largest foreign investments in India's banking industry.
To draw similar interest in state-run banks, India also plans to raise the foreign direct investment limit in them to 49% from 20% presently.
REVIVED SALE PROCESS
IDBI Bank's stake sale process was initiated in 2022 and has since dragged on due to regulatory and procedural approvals.
By March 2026, when the process neared its completion, it stalled due to high government valuation expectations and weak investor appetite amid the Middle East conflict.
Concerns over pension and gratuity liabilities also weighed on bids, Reuters had reported.
($1 = 96.2000 Indian rupees)
(Reporting by Nikunj Ohri, Additional reporting by Ira Dugal and Gopika Gopakumar; Writing by Kashish Tandon; Editing by Mrigank Dhaniwala, Sonia Cheema and Muralikumar Anantharaman)
(([email protected]; 8800437922;))
** Shares of IDBI Bank IDBI.NS rise as much as 5% to 86.35 rupees; last up 2.3%
** India government has invited fresh bids from existing shortlisted bidders for the strategic sale of the lender, NDTV Profit reports, citing sources
** Government plans to conclude the stake sale in the current financial year, realise around 500 billion to 550 billion rupees ($5.25 billion-$5.77 billion) from the transaction, report says
** Earlier this year, India shelved bids it received for majority stake sale in IDBI Bank as offers were below the government's minimum price expectation
** IDBI Bank and India's Department of Investment and Public Asset Management did not immediately respond to a Reuters request for comment
** IDBI Bank is down 18.5% in 2026, compared to a ~3% drop in Nifty Bank Index .NSEBANK
($1 = 95.2650 Indian rupees)
(Reporting by Nishit Navin in Bengaluru)
** Shares of IDBI Bank IDBI.NS rise as much as 5% to 86.35 rupees; last up 2.3%
** India government has invited fresh bids from existing shortlisted bidders for the strategic sale of the lender, NDTV Profit reports, citing sources
** Government plans to conclude the stake sale in the current financial year, realise around 500 billion to 550 billion rupees ($5.25 billion-$5.77 billion) from the transaction, report says
** Earlier this year, India shelved bids it received for majority stake sale in IDBI Bank as offers were below the government's minimum price expectation
** IDBI Bank and India's Department of Investment and Public Asset Management did not immediately respond to a Reuters request for comment
** IDBI Bank is down 18.5% in 2026, compared to a ~3% drop in Nifty Bank Index .NSEBANK
($1 = 95.2650 Indian rupees)
(Reporting by Nishit Navin in Bengaluru)
By Dharamraj Dhutia and Gopika Gopakumar
MUMBAI, June 23 (Reuters) - Fairfax FFH.TO bought Indian government debt worth nearly $1 billion last Friday, according to five sources, in a rare purchase through the local unit of the Canadian investment holding company.
The purchases by Fairfax India Holding Corp FIHu.TO were made to bring capital into the country ahead of a potential deal to buy stake in government-owned IDBI Bank IDBI.NS, one of the sources, who is close to Fairfax, said.
India's recent decision to exempt foreign investors in government bonds from capital gains tax made the transaction viable, according to this source.
Fairfax was among the bidders for a stake in government-owned lender IDBI Bank. The process had been stalled since March this year as potential buyers submitted bids below the reserve price, or the minimum price the government would accept.
Talks over reviving the stake sale have since continued, the source quoted above said, adding there is no certainty of a deal.
All five sources requested anonymity as they are not authorised to speak to media. Fairfax India Holding did not reply to a Reuters query seeking comment. India's Department of Investment and Public Asset Management (DIPAM) did not respond to Reuters' queries.
The Indian government and state-owned Life Insurance Corporation of India LIFI.NS, had together planned on selling 60.7% of the lender as part of a broader government privatisation programme. The government owns 45.48% of IDBI Bank, while LIC holds 49.24%.
BUYING CONCENTRATED AT THE SHORT END
Fairfax bought around 60 billion rupees ($633.7 million) of the 6.03% 2029 bond, which was sold at an auction last Friday, at a yield that was 5 basis points lower than market levels, four of the sources, all treasury officials, said.
The company also likely bought around 6 billion rupees of the 6.79% 2027 bond and 26 billion rupees of treasury bills maturing in May and June 2027, the treasury officials added.
Fairfax is not a regular participant in the Indian bond markets, the officials said. According to financial disclosures, Fairfax India reported holding government securities with fair value of $42.6 million at the end of December 2025.
($1 = 94.6775 Indian rupees)
(Reporting by Dharamraj Dhutia and Gopika Gopakumar in Mumbai; Editing by Ronojoy Mazumdar)
(([email protected];))
By Dharamraj Dhutia and Gopika Gopakumar
MUMBAI, June 23 (Reuters) - Fairfax FFH.TO bought Indian government debt worth nearly $1 billion last Friday, according to five sources, in a rare purchase through the local unit of the Canadian investment holding company.
The purchases by Fairfax India Holding Corp FIHu.TO were made to bring capital into the country ahead of a potential deal to buy stake in government-owned IDBI Bank IDBI.NS, one of the sources, who is close to Fairfax, said.
India's recent decision to exempt foreign investors in government bonds from capital gains tax made the transaction viable, according to this source.
Fairfax was among the bidders for a stake in government-owned lender IDBI Bank. The process had been stalled since March this year as potential buyers submitted bids below the reserve price, or the minimum price the government would accept.
Talks over reviving the stake sale have since continued, the source quoted above said, adding there is no certainty of a deal.
All five sources requested anonymity as they are not authorised to speak to media. Fairfax India Holding did not reply to a Reuters query seeking comment. India's Department of Investment and Public Asset Management (DIPAM) did not respond to Reuters' queries.
The Indian government and state-owned Life Insurance Corporation of India LIFI.NS, had together planned on selling 60.7% of the lender as part of a broader government privatisation programme. The government owns 45.48% of IDBI Bank, while LIC holds 49.24%.
BUYING CONCENTRATED AT THE SHORT END
Fairfax bought around 60 billion rupees ($633.7 million) of the 6.03% 2029 bond, which was sold at an auction last Friday, at a yield that was 5 basis points lower than market levels, four of the sources, all treasury officials, said.
The company also likely bought around 6 billion rupees of the 6.79% 2027 bond and 26 billion rupees of treasury bills maturing in May and June 2027, the treasury officials added.
Fairfax is not a regular participant in the Indian bond markets, the officials said. According to financial disclosures, Fairfax India reported holding government securities with fair value of $42.6 million at the end of December 2025.
($1 = 94.6775 Indian rupees)
(Reporting by Dharamraj Dhutia and Gopika Gopakumar in Mumbai; Editing by Ronojoy Mazumdar)
(([email protected];))
Listing will see existing shareholders offering to sell about 6% of equity
Estimated $3.3 billion IPO to value India's biggest bourse at $57 billion
State Bank of India to make $498 million, Temasek to make $219 million
By Jayshree P Upadhyay
MUMBAI, June 18 (Reuters) - Investors from Indian state-owned lenders to Singapore's sovereign wealth fund and Canada's national pension manager are set to reap a $2.6 billion windfall as India's National Stock Exchange (NSE) moves ahead with a long-awaited listing.
NSE - the country's largest bourse and the world's most active derivatives exchange - filed draft papers for an initial public offering late on Wednesday, following years of regulatory delays.
The listing will be a pure offer-for-sale, with existing shareholders offering to sell about 6% of the exchange's equity and no fresh equity raised.
NSE has more than 200,000 investors currently, and its shares trade at close to 2,000 rupees ($21.18) in the unlisted market, according to trading platforms. That suggests a valuation of some $57 billion, setting the bourse up to become the world's fifth most valuable after London Stock Exchange Group.
The exchange may offer shares at a 5% to 10% discount to private market valuations, said three sources, including merchant bankers. The valuation under discussion is around 1,900 rupees per share, they added, declining to be identified as they are not authorised to speak to the media.
"At this valuation NSE would attract incoming investors while not short-changing existing ones," one source said.
A final decision on pricing will be taken closer to listing, following investor roadshows.
At 1,900 rupees per share, the IPO would be worth $3.3 billion, making it one of India's two largest public offerings alongside Mukesh Ambani’s Reliance Jio, which is likely to list this year in an IPO worth some $4 billion.
NSE said it could not comment beyond that it has filed an IPO prospectus when asked by Reuters about the valuation.
WINDFALL GAINS
The top ten investors offering shares are set for a windfall worth some $2.6 billion, based on acquisition prices disclosed in the draft prospectus.
State Bank of India, the country’s largest lender, will lock in gains of about 47 billion rupees ($497.67 million), while MS Strategic (Mauritius), a Morgan Stanley fund, will make about 29.34 billion rupees, according to Reuters calculations based on prospectus disclosures and valuation estimates.
Singapore's Temasek stands to make 20.67 billion rupees via its Aranda Investment arm, and Canada Pension Plan Investment Board will gain 18.71 billion rupees.
State Bank of India, Morgan Stanley and Temasek did not immediately respond to emails seeking comment. CPPIB declined to comment.
Anubhav Dayal, founder of Hong Kong-headquartered Soach Global Corporation, said its flagship fund first bought into NSE in early 2016 and is now selling 20% of its holding to provide liquidity to investors.
"It has proven to be a great investment. We saw the potential in NSE to serve India's masses," Dayal said, adding that the firm continues to hold NSE as a key investment. "NSE will continue to play an important role in India's economic activity."
GROWTH PROSPECTS AND REGULATORY RISKS
The exchange is likely to begin IPO roadshows over the next two months, the sources said, adding that both domestic mutual funds and global funds have shown early interest in anchoring the issue.
The exchange’s revenue has more than doubled between April 2019 and April 2026 to about 187 billion rupees, driven by strong growth in options trading. However, growth has slowed over the past year after a series of regulatory curbs on derivatives.
The exchange, detailing regulatory risks in its filing, said revenue could continue to be impacted by government and regulatory measures aimed at tempering derivatives activity.
In its IPO papers, NSE said growth will hinge on continued expansion in first-time investors, rising trading activity, innovation in derivatives products and a push into commodities.
Ravi Varanasi, a former group president at NSE who now runs a consultancy advising Indian exchanges, said NSE's near-total grip on the cash market gives it a strong long-term growth opportunity.
"As India’s market capitalisation deepens, cash trading volumes are expected to rise steadily," he said.
($1 = 94.5250 Indian rupees)
(Reporting by Jayshree P Upadhyay; Additional reporting by Bharath Rajeswaran in Bengaluru; Editing by Ira Dugal and Kevin Buckland)
(([email protected]; 9920092491; Reuters Messaging: Twitter: @jaysh88))
Listing will see existing shareholders offering to sell about 6% of equity
Estimated $3.3 billion IPO to value India's biggest bourse at $57 billion
State Bank of India to make $498 million, Temasek to make $219 million
By Jayshree P Upadhyay
MUMBAI, June 18 (Reuters) - Investors from Indian state-owned lenders to Singapore's sovereign wealth fund and Canada's national pension manager are set to reap a $2.6 billion windfall as India's National Stock Exchange (NSE) moves ahead with a long-awaited listing.
NSE - the country's largest bourse and the world's most active derivatives exchange - filed draft papers for an initial public offering late on Wednesday, following years of regulatory delays.
The listing will be a pure offer-for-sale, with existing shareholders offering to sell about 6% of the exchange's equity and no fresh equity raised.
NSE has more than 200,000 investors currently, and its shares trade at close to 2,000 rupees ($21.18) in the unlisted market, according to trading platforms. That suggests a valuation of some $57 billion, setting the bourse up to become the world's fifth most valuable after London Stock Exchange Group.
The exchange may offer shares at a 5% to 10% discount to private market valuations, said three sources, including merchant bankers. The valuation under discussion is around 1,900 rupees per share, they added, declining to be identified as they are not authorised to speak to the media.
"At this valuation NSE would attract incoming investors while not short-changing existing ones," one source said.
A final decision on pricing will be taken closer to listing, following investor roadshows.
At 1,900 rupees per share, the IPO would be worth $3.3 billion, making it one of India's two largest public offerings alongside Mukesh Ambani’s Reliance Jio, which is likely to list this year in an IPO worth some $4 billion.
NSE said it could not comment beyond that it has filed an IPO prospectus when asked by Reuters about the valuation.
WINDFALL GAINS
The top ten investors offering shares are set for a windfall worth some $2.6 billion, based on acquisition prices disclosed in the draft prospectus.
State Bank of India, the country’s largest lender, will lock in gains of about 47 billion rupees ($497.67 million), while MS Strategic (Mauritius), a Morgan Stanley fund, will make about 29.34 billion rupees, according to Reuters calculations based on prospectus disclosures and valuation estimates.
Singapore's Temasek stands to make 20.67 billion rupees via its Aranda Investment arm, and Canada Pension Plan Investment Board will gain 18.71 billion rupees.
State Bank of India, Morgan Stanley and Temasek did not immediately respond to emails seeking comment. CPPIB declined to comment.
Anubhav Dayal, founder of Hong Kong-headquartered Soach Global Corporation, said its flagship fund first bought into NSE in early 2016 and is now selling 20% of its holding to provide liquidity to investors.
"It has proven to be a great investment. We saw the potential in NSE to serve India's masses," Dayal said, adding that the firm continues to hold NSE as a key investment. "NSE will continue to play an important role in India's economic activity."
GROWTH PROSPECTS AND REGULATORY RISKS
The exchange is likely to begin IPO roadshows over the next two months, the sources said, adding that both domestic mutual funds and global funds have shown early interest in anchoring the issue.
The exchange’s revenue has more than doubled between April 2019 and April 2026 to about 187 billion rupees, driven by strong growth in options trading. However, growth has slowed over the past year after a series of regulatory curbs on derivatives.
The exchange, detailing regulatory risks in its filing, said revenue could continue to be impacted by government and regulatory measures aimed at tempering derivatives activity.
In its IPO papers, NSE said growth will hinge on continued expansion in first-time investors, rising trading activity, innovation in derivatives products and a push into commodities.
Ravi Varanasi, a former group president at NSE who now runs a consultancy advising Indian exchanges, said NSE's near-total grip on the cash market gives it a strong long-term growth opportunity.
"As India’s market capitalisation deepens, cash trading volumes are expected to rise steadily," he said.
($1 = 94.5250 Indian rupees)
(Reporting by Jayshree P Upadhyay; Additional reporting by Bharath Rajeswaran in Bengaluru; Editing by Ira Dugal and Kevin Buckland)
(([email protected]; 9920092491; Reuters Messaging: Twitter: @jaysh88))
May 20 (Reuters) - IDBI Bank Ltd IDBI.NS:
IDBI BANK - APPROVED RE-APPOINTMENT OF JAYAKUMAR S. PILLAI AS DEPUTY MD ON BOARD FOR 1 YEAR WITH EFFECT FROM JUNE 12
Source text: ID:nBSE6nDZcB
Further company coverage: IDBI.NS
(([email protected];;))
May 20 (Reuters) - IDBI Bank Ltd IDBI.NS:
IDBI BANK - APPROVED RE-APPOINTMENT OF JAYAKUMAR S. PILLAI AS DEPUTY MD ON BOARD FOR 1 YEAR WITH EFFECT FROM JUNE 12
Source text: ID:nBSE6nDZcB
Further company coverage: IDBI.NS
(([email protected];;))
April 30 (Reuters) - IDBI Bank Ltd IDBI.NS:
IDBI BANK Q4 NET PROFIT 19.43 BILLION RUPEES
IDBI BANK Q4 INTEREST EARNED 77.98 BILLION RUPEES
IDBI BANK Q4 PROVISIONS AND CONTINGENCIES 2.85 BILLION RUPEES
IDBI BANK Q4 GROSS NPA 2.32%
Further company coverage: IDBI.NS
(([email protected];))
April 30 (Reuters) - IDBI Bank Ltd IDBI.NS:
IDBI BANK Q4 NET PROFIT 19.43 BILLION RUPEES
IDBI BANK Q4 INTEREST EARNED 77.98 BILLION RUPEES
IDBI BANK Q4 PROVISIONS AND CONTINGENCIES 2.85 BILLION RUPEES
IDBI BANK Q4 GROSS NPA 2.32%
Further company coverage: IDBI.NS
(([email protected];))
** Shares of IDBI Bank IDBI.NS fall about 7% to 67.95 rupees, lowest level since March 4, 2025
** Government may consider stake sale via offer-for-sale to increase public shareholding in IDBI Bank after attempt to divest stake fell through earlier this month - PTI report, quoting sources
** IDBI, government officials did not immediately respond to a Reuters request for comment
** YTD, IDBI down about 34%
(Reporting by Abhirami G in Bengaluru)
** Shares of IDBI Bank IDBI.NS fall about 7% to 67.95 rupees, lowest level since March 4, 2025
** Government may consider stake sale via offer-for-sale to increase public shareholding in IDBI Bank after attempt to divest stake fell through earlier this month - PTI report, quoting sources
** IDBI, government officials did not immediately respond to a Reuters request for comment
** YTD, IDBI down about 34%
(Reporting by Abhirami G in Bengaluru)
March 20 (Reuters) - IDBI Bank Ltd IDBI.NS:
PENALTY OF 55 MILLION RUPEES IMPOSED ON IDBI BANK
Source text: ID:nBSEbMSLlS
Further company coverage: IDBI.NS
(([email protected];))
March 20 (Reuters) - IDBI Bank Ltd IDBI.NS:
PENALTY OF 55 MILLION RUPEES IMPOSED ON IDBI BANK
Source text: ID:nBSEbMSLlS
Further company coverage: IDBI.NS
(([email protected];))
Weak buyer interest stalls privatisation of firms identified in 2021 plan
Shipping Corp review finds bidder eligibility issues; fresh process or merger proposed
Investors exit HLL Lifecare sale process, government considers splitting assets
By Nikunj Ohri and Sarita Chaganti Singh
NEW DELHI, March 18 (Reuters) - India is considering shelving three planned privatisation sales amid weak investor appetite, two government sources said, a slump that has already derailed its attempt to sell a stake in IDBI Bank and is a fresh blow to the government's flagship divestment programme.
The privatisation plan, delayed for years, is now facing fresh setbacks that include dwindling interest in state‑run firms such as Shipping Corporation of India SCI.NS and HLL Lifecare, besides the collapse of the IDBI Bank IDBI.NS stake sale last week after bids fell short of the government's minimum price.
India's finance, shipping and health ministries and the companies did not respond to Reuters' queries.
Prime Minister Narendra Modi's ambitious privatisation plan was aimed at having the state exit most sectors while remaining only in sensitive ones such as telecom and banking.
But the government could only sell Air India to Tata Sons, and indirect holdings in steel-maker Neelachal Ispat Nigam Ltd to Tata Steel TISC.NS, and Ferro Scrap Nigam to Konoike Transport Co 9025.T.
The initial delays to the plan came from bureaucratic red tape and political pushback after Modi failed to secure a full majority in 2024 elections and had to rely on regional allies to form the government.
DWINDLING BUYER INTEREST
India had invited bids to privatise Shipping Corporation in 2020 and received interest from multiple bidders, but a later review found the shortlisted bidders were ineligible to acquire the firm, the two government sources said.
The divestment department has since proposed scrapping the sale and either restarting the process, or exploring a merger with Container Corporation of India CCRI.NS to integrate the logistics chain, the sources said.
The government had also targeted privatising Container Corporation of India in 2021-22 but never launched the sale.
Another state-run firm, HLL Lifecare, was put on the block in 2021 and financial bids were invited for the sale. However, interested bidders declined to move ahead with the process and sought changes in the sale offer terms, both the sources said, without giving details.
The government is however yet to take a final call on shelving the current stake sale plans in these three state-run companies, one of the two sources said.
The details of the sales processes of these three state-run firms have not been previously reported.
Operational inefficiencies, unclear asset transfers and high government pricing expectations, coupled with limited incentives, are keeping investor interest weak and stalling privatisation, said Ankur Wahal, director at professional services firm En Pointe Adwisers.
HIGHER VALUATION
IDBI Bank's scrapped sale derailed what was seen as a model for future bank privatisations, after a high reserve price and Middle East‑related geopolitical uncertainty curbed investor interest, an industry source said.
Also, the lack of protection for liabilities such as pension and gratuity dues further deterred investors.
The failed sale will likely hit divestment receipts for the next financial year, starting April 1, Wahal said. India has targeted 800 billion rupees ($8.66 billion), in asset monetisation and divestments, with a significant portion earlier expected from IDBI Bank.
This comes as the Middle East crisis threatens to raise India's oil import bill, adding pressure through higher inflation and a wider current account deficit.
"The government's privatisation plan has hit a wall," said N.R. Bhanumurthy, director at the Madras School of Economics. Potential bidders will be interested in acquiring state-run companies if valuations are attractive, he said.
($1 = 92.3760 Indian rupees)
(Reporting by Nikunj Ohri & Sarita Chaganti Singh in New Delhi; Additional reporting by Gopika Gopakumar in Mumbai and Raju Gopalakrishnan)
(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))
Weak buyer interest stalls privatisation of firms identified in 2021 plan
Shipping Corp review finds bidder eligibility issues; fresh process or merger proposed
Investors exit HLL Lifecare sale process, government considers splitting assets
By Nikunj Ohri and Sarita Chaganti Singh
NEW DELHI, March 18 (Reuters) - India is considering shelving three planned privatisation sales amid weak investor appetite, two government sources said, a slump that has already derailed its attempt to sell a stake in IDBI Bank and is a fresh blow to the government's flagship divestment programme.
The privatisation plan, delayed for years, is now facing fresh setbacks that include dwindling interest in state‑run firms such as Shipping Corporation of India SCI.NS and HLL Lifecare, besides the collapse of the IDBI Bank IDBI.NS stake sale last week after bids fell short of the government's minimum price.
India's finance, shipping and health ministries and the companies did not respond to Reuters' queries.
Prime Minister Narendra Modi's ambitious privatisation plan was aimed at having the state exit most sectors while remaining only in sensitive ones such as telecom and banking.
But the government could only sell Air India to Tata Sons, and indirect holdings in steel-maker Neelachal Ispat Nigam Ltd to Tata Steel TISC.NS, and Ferro Scrap Nigam to Konoike Transport Co 9025.T.
The initial delays to the plan came from bureaucratic red tape and political pushback after Modi failed to secure a full majority in 2024 elections and had to rely on regional allies to form the government.
DWINDLING BUYER INTEREST
India had invited bids to privatise Shipping Corporation in 2020 and received interest from multiple bidders, but a later review found the shortlisted bidders were ineligible to acquire the firm, the two government sources said.
The divestment department has since proposed scrapping the sale and either restarting the process, or exploring a merger with Container Corporation of India CCRI.NS to integrate the logistics chain, the sources said.
The government had also targeted privatising Container Corporation of India in 2021-22 but never launched the sale.
Another state-run firm, HLL Lifecare, was put on the block in 2021 and financial bids were invited for the sale. However, interested bidders declined to move ahead with the process and sought changes in the sale offer terms, both the sources said, without giving details.
The government is however yet to take a final call on shelving the current stake sale plans in these three state-run companies, one of the two sources said.
The details of the sales processes of these three state-run firms have not been previously reported.
Operational inefficiencies, unclear asset transfers and high government pricing expectations, coupled with limited incentives, are keeping investor interest weak and stalling privatisation, said Ankur Wahal, director at professional services firm En Pointe Adwisers.
HIGHER VALUATION
IDBI Bank's scrapped sale derailed what was seen as a model for future bank privatisations, after a high reserve price and Middle East‑related geopolitical uncertainty curbed investor interest, an industry source said.
Also, the lack of protection for liabilities such as pension and gratuity dues further deterred investors.
The failed sale will likely hit divestment receipts for the next financial year, starting April 1, Wahal said. India has targeted 800 billion rupees ($8.66 billion), in asset monetisation and divestments, with a significant portion earlier expected from IDBI Bank.
This comes as the Middle East crisis threatens to raise India's oil import bill, adding pressure through higher inflation and a wider current account deficit.
"The government's privatisation plan has hit a wall," said N.R. Bhanumurthy, director at the Madras School of Economics. Potential bidders will be interested in acquiring state-run companies if valuations are attractive, he said.
($1 = 92.3760 Indian rupees)
(Reporting by Nikunj Ohri & Sarita Chaganti Singh in New Delhi; Additional reporting by Gopika Gopakumar in Mumbai and Raju Gopalakrishnan)
(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))
March 16 (Reuters) - Shares of IDBI Bank IDBI.NS fell 11.5% on Monday after a report that the Indian government will shelve the bids it received for a majority stake sale in the lender as the offers received were below the government's minimum price expectation.
The stock was on course for its biggest single-day drop since June 2024 and was at 80.10 rupees as of 9:24 a.m. IST.
(Reporting by Urvi Dugar in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected]; +91 9558725583;))
March 16 (Reuters) - Shares of IDBI Bank IDBI.NS fell 11.5% on Monday after a report that the Indian government will shelve the bids it received for a majority stake sale in the lender as the offers received were below the government's minimum price expectation.
The stock was on course for its biggest single-day drop since June 2024 and was at 80.10 rupees as of 9:24 a.m. IST.
(Reporting by Urvi Dugar in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected]; +91 9558725583;))
Recasts throughout, changes sourcing
March 13 (Reuters) - India will shelve the bids it received for a majority stake sale in IDBI Bank IDBI.NS, as the offers received were below the government's minimum price expectation, a government source told Reuters.
The Indian government and state-owned Life Insurance Corporation of India LIFI.NS had initiated the process to sell 60.7% of the lender in 2022.
India's government owns 45.48% of IDBI Bank, while LIC holds 49.24%.
The existing sale process would be scrapped as the bids received were below the so-called reserve price, or the minimum sale price, set for the sale, the source said.
Bloomberg News reported the development first.
The government may initiate a fresh process when the market appetite improves and there is strong interest among buyers, the source added.
IDBI Bank and India's finance ministry didn't immediately respond to a Reuters request for comment outside regular business hours.
Reuters had reported that the planned sale of IDBI Bank had attracted bids from Canadian investment group Fairfax Financial FFH.TO and Emirates NBD ENBD.DU.
Tepid interest in acquiring the lender controlled by LIC contrasts with strong foreign investor appetite underscored by Dubai-based Emirates NBD's ENBD.DU $3 billion purchase of a 60% stake in RBL Bank RATB.NS and Sumitomo Mitsui Banking Corp's acquisition of a 24% stake in Yes Bank YESB.NS.
(Reporting by Nikunj Ohri and Anna Peverieri; Editing by Louise Heavens)
(([email protected];))
Recasts throughout, changes sourcing
March 13 (Reuters) - India will shelve the bids it received for a majority stake sale in IDBI Bank IDBI.NS, as the offers received were below the government's minimum price expectation, a government source told Reuters.
The Indian government and state-owned Life Insurance Corporation of India LIFI.NS had initiated the process to sell 60.7% of the lender in 2022.
India's government owns 45.48% of IDBI Bank, while LIC holds 49.24%.
The existing sale process would be scrapped as the bids received were below the so-called reserve price, or the minimum sale price, set for the sale, the source said.
Bloomberg News reported the development first.
The government may initiate a fresh process when the market appetite improves and there is strong interest among buyers, the source added.
IDBI Bank and India's finance ministry didn't immediately respond to a Reuters request for comment outside regular business hours.
Reuters had reported that the planned sale of IDBI Bank had attracted bids from Canadian investment group Fairfax Financial FFH.TO and Emirates NBD ENBD.DU.
Tepid interest in acquiring the lender controlled by LIC contrasts with strong foreign investor appetite underscored by Dubai-based Emirates NBD's ENBD.DU $3 billion purchase of a 60% stake in RBL Bank RATB.NS and Sumitomo Mitsui Banking Corp's acquisition of a 24% stake in Yes Bank YESB.NS.
(Reporting by Nikunj Ohri and Anna Peverieri; Editing by Louise Heavens)
(([email protected];))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, March 9 (Reuters Breakingviews) - A dealmaking boom in India's banking sector has an unlikely loser: the government. Canadian insurance holding firm Fairfax Financial FFH.TO leads the race to buy a 61% stake from Indian state entities in $13 billion IDBI Bank IDBI.NS, Bloomberg reported in February, citing sources. An $8 billion transaction would be the largest-ever foreign direct investment in a local bank. But crystallising a premium valuation looks challenging.
A deal would complete a full circle for the lender hardest hit by an asset quality crisis: in 2018, bad loans comprised nearly one-third of its portfolio. Provisions for that sour pool eroded its capital base and prompted New Delhi, which then owned 86% of IDBI, to press state-backed Life Insurance Corporation LIFI.NS to pump in 216 billion rupees, or $2.4 billion at current rates, to raise its 8% stake to 51% in 2019.
LIC now holds 49% of IDBI's shares and the government owns 45%. Selling a 30% stake to Fairfax at the latest market price would fetch the insurer a 136% return on its 2019 investment. New Delhi would be worse off, though: the lender's shares trade lower than they did 13 years ago.
Yet even current multiples may be difficult to fetch. IDBI's shares are trading at about 2 times forward book value, almost twice that of similar-sized rivals Yes Bank YESB.NS and IDFC First Bank IDFB.NS. Throwing in employee liabilities, restructuring costs and the likely absence of indemnity clauses gives the buyer a strong case for a discount.
An abundance of takeover targets has hurt New Delhi, too. Launched in 2022, the slow-moving sale process of IDBI prompted early potential bidders to look elsewhere: last year Sumitomo Mitsui Banking Corporation 8316.T bought a 24% stake in Yes Bank.
With Emirates NBD ENBD.DU still in the reckoning with Fairfax, it's a two-horse race to own IDBI. Both bidders already have a foothold in India's credit market: the Dubai-headquartered lender is set to take control of the $2 billion RBL Bank RATB.NS and Fairfax owns $675 million CSB Bank CSBB.NS.
That chips away at any shred of bargaining power left with the sellers, who can hardly demand a control premium. Regulations cap voting rights of private bank shareholders at 26%. That puts the new owner effectively at par on voting decisions with LIC and the government, which will hold a combined 34% after the sale. To maximise takings, officials could ask the central bank to relax the voting rule. The other option is to reduce their total stake to well below 26%.
Otherwise, New Delhi risks catching the weak end of India's banking M&A wave.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Fairfax Financial Holdings is the frontrunner to buy a majority stake in IDBI Bank, Bloomberg reported on February 27, citing unnamed people familiar with the matter.
Valuing the 61% stake that the government and the Life Insurance Corporation of India hold in IDBI at the current market price of about $8 billion could make it the biggest foreign direct investment in the country's banking sector, the report added.
IDBI's shares are worth less than they were 13 years ago https://www.reuters.com/graphics/BRV-BRV/gkplkwarovb/chart.png
(Editing by Antony Currie; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, March 9 (Reuters Breakingviews) - A dealmaking boom in India's banking sector has an unlikely loser: the government. Canadian insurance holding firm Fairfax Financial FFH.TO leads the race to buy a 61% stake from Indian state entities in $13 billion IDBI Bank IDBI.NS, Bloomberg reported in February, citing sources. An $8 billion transaction would be the largest-ever foreign direct investment in a local bank. But crystallising a premium valuation looks challenging.
A deal would complete a full circle for the lender hardest hit by an asset quality crisis: in 2018, bad loans comprised nearly one-third of its portfolio. Provisions for that sour pool eroded its capital base and prompted New Delhi, which then owned 86% of IDBI, to press state-backed Life Insurance Corporation LIFI.NS to pump in 216 billion rupees, or $2.4 billion at current rates, to raise its 8% stake to 51% in 2019.
LIC now holds 49% of IDBI's shares and the government owns 45%. Selling a 30% stake to Fairfax at the latest market price would fetch the insurer a 136% return on its 2019 investment. New Delhi would be worse off, though: the lender's shares trade lower than they did 13 years ago.
Yet even current multiples may be difficult to fetch. IDBI's shares are trading at about 2 times forward book value, almost twice that of similar-sized rivals Yes Bank YESB.NS and IDFC First Bank IDFB.NS. Throwing in employee liabilities, restructuring costs and the likely absence of indemnity clauses gives the buyer a strong case for a discount.
An abundance of takeover targets has hurt New Delhi, too. Launched in 2022, the slow-moving sale process of IDBI prompted early potential bidders to look elsewhere: last year Sumitomo Mitsui Banking Corporation 8316.T bought a 24% stake in Yes Bank.
With Emirates NBD ENBD.DU still in the reckoning with Fairfax, it's a two-horse race to own IDBI. Both bidders already have a foothold in India's credit market: the Dubai-headquartered lender is set to take control of the $2 billion RBL Bank RATB.NS and Fairfax owns $675 million CSB Bank CSBB.NS.
That chips away at any shred of bargaining power left with the sellers, who can hardly demand a control premium. Regulations cap voting rights of private bank shareholders at 26%. That puts the new owner effectively at par on voting decisions with LIC and the government, which will hold a combined 34% after the sale. To maximise takings, officials could ask the central bank to relax the voting rule. The other option is to reduce their total stake to well below 26%.
Otherwise, New Delhi risks catching the weak end of India's banking M&A wave.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Fairfax Financial Holdings is the frontrunner to buy a majority stake in IDBI Bank, Bloomberg reported on February 27, citing unnamed people familiar with the matter.
Valuing the 61% stake that the government and the Life Insurance Corporation of India hold in IDBI at the current market price of about $8 billion could make it the biggest foreign direct investment in the country's banking sector, the report added.
IDBI's shares are worth less than they were 13 years ago https://www.reuters.com/graphics/BRV-BRV/gkplkwarovb/chart.png
(Editing by Antony Currie; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
-- Source link: https://tinyurl.com/5f8977v7
-- Note: Reuters has not verified this story and does not vouch for its accuracy
-- Source link: https://tinyurl.com/5f8977v7
-- Note: Reuters has not verified this story and does not vouch for its accuracy
Feb 10 (Reuters) - IDBI Bank Ltd IDBI.NS:
IDBI BANK LTD - RECEIVES NOTICE OF STRIKE ON FEBRUARY 12, 2026
Source text: ID:nBSE4HyZ3Z
Further company coverage: IDBI.NS
(([email protected];))
Feb 10 (Reuters) - IDBI Bank Ltd IDBI.NS:
IDBI BANK LTD - RECEIVES NOTICE OF STRIKE ON FEBRUARY 12, 2026
Source text: ID:nBSE4HyZ3Z
Further company coverage: IDBI.NS
(([email protected];))
** India's IDBI Bank IDBI.NS shares drop 2% in early trade
** India's divestment secretary said on Friday it got bids for a stake sale in the lender without disclosing details
** Reuters reported on Friday citing sources Kotak Mahindra Bank KTKM.NS among firms in fray to bid for IDBI Bank stake
** KTKM, in an exchange filing on Saturday, denied participation in the sale
** KTKM shares up 1% on the day
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
** India's IDBI Bank IDBI.NS shares drop 2% in early trade
** India's divestment secretary said on Friday it got bids for a stake sale in the lender without disclosing details
** Reuters reported on Friday citing sources Kotak Mahindra Bank KTKM.NS among firms in fray to bid for IDBI Bank stake
** KTKM, in an exchange filing on Saturday, denied participation in the sale
** KTKM shares up 1% on the day
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
Adds details from government spokesperson and holdings from paragraph 3
Feb 7 (Reuters) - India's Kotak Mahindra Bank KTKM.NS said in an exchange filing on Saturday that it has not submitted a financial bid for IDBI Bank IDBI.NS.
Reuters on Friday reported that the private lender was one of the bidders for the state-owned bank.
The government has received bids for the bank, Divestment Secretary Arunish Chawla said on Friday, without disclosing details.
The Indian government and state-owned Life Insurance Corporation of India (LIC) (LIFI.NS) together plan to sell 60.7% of the lender as part of a broader government privatisation programme. The government owns 45.48% of IDBI Bank, while LIC holds 49.24%.
(Reporting by Sai Ishwarbharath B; Editing by Sam Holmes)
Adds details from government spokesperson and holdings from paragraph 3
Feb 7 (Reuters) - India's Kotak Mahindra Bank KTKM.NS said in an exchange filing on Saturday that it has not submitted a financial bid for IDBI Bank IDBI.NS.
Reuters on Friday reported that the private lender was one of the bidders for the state-owned bank.
The government has received bids for the bank, Divestment Secretary Arunish Chawla said on Friday, without disclosing details.
The Indian government and state-owned Life Insurance Corporation of India (LIC) (LIFI.NS) together plan to sell 60.7% of the lender as part of a broader government privatisation programme. The government owns 45.48% of IDBI Bank, while LIC holds 49.24%.
(Reporting by Sai Ishwarbharath B; Editing by Sam Holmes)
NEW DELHI, Feb 6 (Reuters) - The Indian government has received bids for a sale of its stake in IDBI IDBI.NS bank, the country's divestment secretary said on Friday.
(Reporting by Nikunj Ohri, writing by Shilpa Jamkhandikar)
(([email protected];))
NEW DELHI, Feb 6 (Reuters) - The Indian government has received bids for a sale of its stake in IDBI IDBI.NS bank, the country's divestment secretary said on Friday.
(Reporting by Nikunj Ohri, writing by Shilpa Jamkhandikar)
(([email protected];))
Adds details from paragraph 2-9
By Nikunj Ohri
NEW DELHI, Feb 2 (Reuters) - The Indian government is holding inter-ministerial consultations to raise the limit on foreign direct investment in state-run banks to 49% from 20%, India's financial services secretary M Nagaraju told reporters on Monday.
Foreign interest in India's banking industry is on the rise as evidenced for instance by Dubai-based Emirates NBD's ENBD.DU $3 billion purchase of a 60% stake in private RBL Bank RATB.NS.
Currently, India allows 74% foreign investment in private banks but limits shareholdings of any single foreign institution to 15% unless the Reserve Bank of India grants an exemption.
The Asian nation plans to more than double current limits of direct foreign investment in state-run banks, Nagaraju said. Raising the foreign ownership limit will help them gain more capital in the coming years, Reuters reported last year.
Separately, India's state-run banks will launch qualified institutional placement (QIP) of shares worth about 500 billion rupees ($5.46 billion) in the fiscal 2026-27 year (April-March), more than the planned 450 billion rupees in the current fiscal year, Nagaraju said.
He was speaking to reporters in New Delhi a day after Finance Minister Nirmala Sitharaman presented the nation's annual budget .
New Delhi may also launch an offer next year to sell a portion of its stake in the insurance behemoth Life Insurance Corporation LIFI.NS, he added.
The Indian government will also get financial bids for IDBI Bank IDBI.NS this month, Nagaraju said.
The government, which owns 45.48% in IDBI Bank, and state-owned LIC which holds 49.24%, together plan to sell 60.7% of the lender. IDBI Bank had to be rescued by the state-owned insurer in 2019 after a surge in bad loans at the lender.
($1 = 91.6350 Indian rupees)
(Reporting by Nikunj Ohri; Writing by Tanvi Mehta; Editing by Sonali Paul and Raju Gopalakrishnan)
(([email protected];))
Adds details from paragraph 2-9
By Nikunj Ohri
NEW DELHI, Feb 2 (Reuters) - The Indian government is holding inter-ministerial consultations to raise the limit on foreign direct investment in state-run banks to 49% from 20%, India's financial services secretary M Nagaraju told reporters on Monday.
Foreign interest in India's banking industry is on the rise as evidenced for instance by Dubai-based Emirates NBD's ENBD.DU $3 billion purchase of a 60% stake in private RBL Bank RATB.NS.
Currently, India allows 74% foreign investment in private banks but limits shareholdings of any single foreign institution to 15% unless the Reserve Bank of India grants an exemption.
The Asian nation plans to more than double current limits of direct foreign investment in state-run banks, Nagaraju said. Raising the foreign ownership limit will help them gain more capital in the coming years, Reuters reported last year.
Separately, India's state-run banks will launch qualified institutional placement (QIP) of shares worth about 500 billion rupees ($5.46 billion) in the fiscal 2026-27 year (April-March), more than the planned 450 billion rupees in the current fiscal year, Nagaraju said.
He was speaking to reporters in New Delhi a day after Finance Minister Nirmala Sitharaman presented the nation's annual budget .
New Delhi may also launch an offer next year to sell a portion of its stake in the insurance behemoth Life Insurance Corporation LIFI.NS, he added.
The Indian government will also get financial bids for IDBI Bank IDBI.NS this month, Nagaraju said.
The government, which owns 45.48% in IDBI Bank, and state-owned LIC which holds 49.24%, together plan to sell 60.7% of the lender. IDBI Bank had to be rescued by the state-owned insurer in 2019 after a surge in bad loans at the lender.
($1 = 91.6350 Indian rupees)
(Reporting by Nikunj Ohri; Writing by Tanvi Mehta; Editing by Sonali Paul and Raju Gopalakrishnan)
(([email protected];))
By Gopika Gopakumar and Nikunj Ohri
MUMBAI, Jan 30 (Reuters) - India's federal government has set a February 5 deadline for financial bids for IDBI Bank IDBI.NS as it looks to divest a majority of its holding in the lender, according to two sources familiar with the matter.
The deadline has been communicated to bidders who are eligible for bidding, suggesting that the process of disinvestment in IDBI Bank has entered its final phase.
The central bank had approved Fairfax Financial Holdings, Emirates NBD and Kotak Mahindra Bank KTKM.NS as eligible bidders in 2024, Reuters had previously reported. The divestment process has been underway since then, with the government trying to finalize the details of the stake sale process.
The government had earlier said that it hoped to complete the stake sale process, which began in 2022, by March 2026.
The government, which owns 45.48% in IDBI Bank, and state-owned Life Insurance Corporation of India LIFI.NS which holds 49.24%, together plan to sell 60.7% of the lender.
As part of the stake sale, the successful bidder will be allowed to rename the bank, a separate source familiar with the process said.
IDBI Bank had to be rescued by the state-owned insurer in 2019 after a surge in bad loans at the lender.
An email sent to the federal finance ministry, under which the divestment process falls, was not immediately answered.
(Reporting by Gopika Gopakumar in Mumbai and Nikunj Ohri in New Delhi; Editing by Anil D'Silva)
(([email protected]; +91-9833024892;))
By Gopika Gopakumar and Nikunj Ohri
MUMBAI, Jan 30 (Reuters) - India's federal government has set a February 5 deadline for financial bids for IDBI Bank IDBI.NS as it looks to divest a majority of its holding in the lender, according to two sources familiar with the matter.
The deadline has been communicated to bidders who are eligible for bidding, suggesting that the process of disinvestment in IDBI Bank has entered its final phase.
The central bank had approved Fairfax Financial Holdings, Emirates NBD and Kotak Mahindra Bank KTKM.NS as eligible bidders in 2024, Reuters had previously reported. The divestment process has been underway since then, with the government trying to finalize the details of the stake sale process.
The government had earlier said that it hoped to complete the stake sale process, which began in 2022, by March 2026.
The government, which owns 45.48% in IDBI Bank, and state-owned Life Insurance Corporation of India LIFI.NS which holds 49.24%, together plan to sell 60.7% of the lender.
As part of the stake sale, the successful bidder will be allowed to rename the bank, a separate source familiar with the process said.
IDBI Bank had to be rescued by the state-owned insurer in 2019 after a surge in bad loans at the lender.
An email sent to the federal finance ministry, under which the divestment process falls, was not immediately answered.
(Reporting by Gopika Gopakumar in Mumbai and Nikunj Ohri in New Delhi; Editing by Anil D'Silva)
(([email protected]; +91-9833024892;))
adds line on requesting comment from co
** Shares of Indian lender IDBI Bank IDBI.NS rise 2.55% to 97.89 rupees
** Govt has formally invited bids for strategic disinvestment in the bank to privatize it, business news channel NDTV Profitsays
** All key regulatory and security clearances completed, decision likely to be announced by March - report
** IDBI Bank did not immediately respond to Reuters request for comment
** Trading vols at 18.3 mln shares so far vs 30-day avg of 15.8 mln shares
** Stock up ~35% in 2025
(Reporting by Abhirami G in Bengaluru)
adds line on requesting comment from co
** Shares of Indian lender IDBI Bank IDBI.NS rise 2.55% to 97.89 rupees
** Govt has formally invited bids for strategic disinvestment in the bank to privatize it, business news channel NDTV Profitsays
** All key regulatory and security clearances completed, decision likely to be announced by March - report
** IDBI Bank did not immediately respond to Reuters request for comment
** Trading vols at 18.3 mln shares so far vs 30-day avg of 15.8 mln shares
** Stock up ~35% in 2025
(Reporting by Abhirami G in Bengaluru)
Dec 29 (Reuters) - IDBI Bank Ltd IDBI.NS:
FACES 3.5 MILLION RUPEES PENALTY
Source text: ID:nBSE1BVT01
Further company coverage: IDBI.NS
(([email protected];))
Dec 29 (Reuters) - IDBI Bank Ltd IDBI.NS:
FACES 3.5 MILLION RUPEES PENALTY
Source text: ID:nBSE1BVT01
Further company coverage: IDBI.NS
(([email protected];))
Repeats story published on Monday, with no changes to the text
By Gopika Gopakumar
Oct 13 (Reuters) - Dubai-based bank Emirates NBD ENBD.DU is in advanced talks to buy a stake in Indian private lender RBL Bank RATB.NS, two people familiar with the deal told Reuters.
The Dubai bank is looking to invest in the lender via a preferential allotment of equity and warrants, one of the people familiar with the deal said.
The initial stake purchase could go up to 25%, that person said.
Both sources declined to be identified as they are not authorised to speak to the media.
The talks were first reported by two Indian financial media outlets.
Emirates NBD declined comment while RBL Bank did not immediately respond to a Reuters request for comment.
RBL Bank has a market capitalisation of 177.28 billion Indian rupees ($2.00 billion) and is widely held by retail shareholders and fund houses, as per data from NSE. Shares on Monday closed down 0.82%.
Reuters could not determine the value of the deal or if it will be announced imminently.
The UAE's second-largest bank by total assets has been looking to expand in India and was previously in talks to pick up a stake in government-owned IDBI BankIDBI.NS.
Reuters reported in June that the Reserve Bank of India (RBI) was considering possible rule changes to allow higher foreign ownership in Indian banks, amid overseas buyers' interest and India's need for long-term capital.
Under current regulations, foreigners, including portfolio investors, can own up to 74%, but a strategic foreign investor is limited to 15%.
In May, the RBI made an exception to allow Japan's Sumitomo Mitsui Banking Corp (SMBC) to buy a 20% stake in Yes Bank. SMBC agreed to acquire a further 4.2% stake in September.
($1 = 88.6350 Indian rupees)
(Reporting by Gopika Gopakumar in Mumbai; Additional reporting by Ananta Agarwal in Bengaluru and Federico Maccioni; Editing by Tasim Zahid and Tomasz Janowski)
(([email protected];))
Repeats story published on Monday, with no changes to the text
By Gopika Gopakumar
Oct 13 (Reuters) - Dubai-based bank Emirates NBD ENBD.DU is in advanced talks to buy a stake in Indian private lender RBL Bank RATB.NS, two people familiar with the deal told Reuters.
The Dubai bank is looking to invest in the lender via a preferential allotment of equity and warrants, one of the people familiar with the deal said.
The initial stake purchase could go up to 25%, that person said.
Both sources declined to be identified as they are not authorised to speak to the media.
The talks were first reported by two Indian financial media outlets.
Emirates NBD declined comment while RBL Bank did not immediately respond to a Reuters request for comment.
RBL Bank has a market capitalisation of 177.28 billion Indian rupees ($2.00 billion) and is widely held by retail shareholders and fund houses, as per data from NSE. Shares on Monday closed down 0.82%.
Reuters could not determine the value of the deal or if it will be announced imminently.
The UAE's second-largest bank by total assets has been looking to expand in India and was previously in talks to pick up a stake in government-owned IDBI BankIDBI.NS.
Reuters reported in June that the Reserve Bank of India (RBI) was considering possible rule changes to allow higher foreign ownership in Indian banks, amid overseas buyers' interest and India's need for long-term capital.
Under current regulations, foreigners, including portfolio investors, can own up to 74%, but a strategic foreign investor is limited to 15%.
In May, the RBI made an exception to allow Japan's Sumitomo Mitsui Banking Corp (SMBC) to buy a 20% stake in Yes Bank. SMBC agreed to acquire a further 4.2% stake in September.
($1 = 88.6350 Indian rupees)
(Reporting by Gopika Gopakumar in Mumbai; Additional reporting by Ananta Agarwal in Bengaluru and Federico Maccioni; Editing by Tasim Zahid and Tomasz Janowski)
(([email protected];))
Aug 8 (Reuters) - IDBI Bank Ltd IDBI.NS:
IDBI BANK LTD - RECEIVES NOTICE FOR STRIKE ON AUGUST 11, 2025
Source text: ID:nBSEbwfWdB
Further company coverage: IDBI.NS
(([email protected];))
Aug 8 (Reuters) - IDBI Bank Ltd IDBI.NS:
IDBI BANK LTD - RECEIVES NOTICE FOR STRIKE ON AUGUST 11, 2025
Source text: ID:nBSEbwfWdB
Further company coverage: IDBI.NS
(([email protected];))
Adds details on timing, stake from paragraph 2
NEW DELHI, Aug 1 (Reuters) - India has completed due diligence for the stake sale of IDBI Bank IDBI.NS and plans to invite financial bids between October and December, the country's divestment secretary said on Friday.
A successful bidder will be announced by the end of March 2026, said Arunish Chawla, Department of Investment and Public Asset Management Secretary.
Banking sector deals in India, especially those involving foreign entities, are rare. A full takeover of troubled Indian lender Lakshmi Vilas Bank by Singapore-based DBS Group in a regulatory-driven transaction in 2020 was the last major deal.
The sale of a majority stake in IDBI Bank has been seen as a first step towards privatising state-run banks.
The government, which owns 45.48% in IDBI Bank, and state-owned Life Insurance Corporation of India LIFI.NS which holds 49.24%, together plan to sell 60.7% of the lender.
The sale process was first announced in 2022.
Reuters has reported that interested buyers include Emirates NBD and Canadian billionaire Prem Watsa.
(Reporting by Nikunj Ohri, Writing by Shilpa Jamkhandikar, Editing by Louise Heavens)
(([email protected];))
Adds details on timing, stake from paragraph 2
NEW DELHI, Aug 1 (Reuters) - India has completed due diligence for the stake sale of IDBI Bank IDBI.NS and plans to invite financial bids between October and December, the country's divestment secretary said on Friday.
A successful bidder will be announced by the end of March 2026, said Arunish Chawla, Department of Investment and Public Asset Management Secretary.
Banking sector deals in India, especially those involving foreign entities, are rare. A full takeover of troubled Indian lender Lakshmi Vilas Bank by Singapore-based DBS Group in a regulatory-driven transaction in 2020 was the last major deal.
The sale of a majority stake in IDBI Bank has been seen as a first step towards privatising state-run banks.
The government, which owns 45.48% in IDBI Bank, and state-owned Life Insurance Corporation of India LIFI.NS which holds 49.24%, together plan to sell 60.7% of the lender.
The sale process was first announced in 2022.
Reuters has reported that interested buyers include Emirates NBD and Canadian billionaire Prem Watsa.
(Reporting by Nikunj Ohri, Writing by Shilpa Jamkhandikar, Editing by Louise Heavens)
(([email protected];))
Adds quote in paragraph 4, updates subscription level in paragraph 8
By Vivek Kumar M, Chandini Monnappa and Hritam Mukherjee
July 30 (Reuters) - National Securities Depository Ltd's NATS.NS $458 million IPO was fully subscribed within hours of its Wednesday launch as investors rushed to back its leading position in India's rapidly growing securities market.
The country's largest depository is drawing strong investor interest amid a retail investing boom, with demat accounts growing at a 21.9% compound annual rate since fiscal 2014 to 192.4 million by March 2025, according to its offer document.
NSDL holds around 86% of India's securities depository market, where it operates as one of two licensed players. Shares of smaller rival Central Depository Services CENA.NS have surged nearly twelve-fold since their 2017 debut.
"NSDL's valuation is decent compared to CDSL at ~60x. This differential could lead to some investors exiting CDSL and buying NSDL post the latter's listing," said Ambareesh Baliga, an independent market analyst.
NSDL's IPO is an offer for sale, with IDBI Bank IDBI.NS and the National Stock Exchange paring stakes to meet the 15% regulatory ownership cap for market infrastructure institutions such as depositories.
The offering, among India's largest this year, raised $137.35 million in its anchor round on Tuesday from marquee investors including Life Insurance Corporation of India LIFI.NS and U.S.-based Capital International.
Shares were allotted at the upper end of the price band of 760 rupees to 800 rupees. The issue will close on August 1.
The portions reserved for retail and non-institutional investors were fully subscribed, while qualified institutional buyers bid for 79% of the shares allotted.
Three analysts said NSDL's issue was fairly priced at 47x of fiscal year 2025 earnings.
"Given its strong market position, high entry barriers, and long-term growth tailwinds from India's digital and capital market expansion, we assign a 'subscribe' rating for long-term investors," Angel One said in a note.
($1 = 87.3470 Indian rupees)
(Reporting by Chandini Monnappa, Hritam Mukherjee and Vivek Kumar M in Bengaluru; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
(([email protected]; X: @MukherjeeHritam;))
Adds quote in paragraph 4, updates subscription level in paragraph 8
By Vivek Kumar M, Chandini Monnappa and Hritam Mukherjee
July 30 (Reuters) - National Securities Depository Ltd's NATS.NS $458 million IPO was fully subscribed within hours of its Wednesday launch as investors rushed to back its leading position in India's rapidly growing securities market.
The country's largest depository is drawing strong investor interest amid a retail investing boom, with demat accounts growing at a 21.9% compound annual rate since fiscal 2014 to 192.4 million by March 2025, according to its offer document.
NSDL holds around 86% of India's securities depository market, where it operates as one of two licensed players. Shares of smaller rival Central Depository Services CENA.NS have surged nearly twelve-fold since their 2017 debut.
"NSDL's valuation is decent compared to CDSL at ~60x. This differential could lead to some investors exiting CDSL and buying NSDL post the latter's listing," said Ambareesh Baliga, an independent market analyst.
NSDL's IPO is an offer for sale, with IDBI Bank IDBI.NS and the National Stock Exchange paring stakes to meet the 15% regulatory ownership cap for market infrastructure institutions such as depositories.
The offering, among India's largest this year, raised $137.35 million in its anchor round on Tuesday from marquee investors including Life Insurance Corporation of India LIFI.NS and U.S.-based Capital International.
Shares were allotted at the upper end of the price band of 760 rupees to 800 rupees. The issue will close on August 1.
The portions reserved for retail and non-institutional investors were fully subscribed, while qualified institutional buyers bid for 79% of the shares allotted.
Three analysts said NSDL's issue was fairly priced at 47x of fiscal year 2025 earnings.
"Given its strong market position, high entry barriers, and long-term growth tailwinds from India's digital and capital market expansion, we assign a 'subscribe' rating for long-term investors," Angel One said in a note.
($1 = 87.3470 Indian rupees)
(Reporting by Chandini Monnappa, Hritam Mukherjee and Vivek Kumar M in Bengaluru; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
(([email protected]; X: @MukherjeeHritam;))
July 9 (Reuters) - Indian state-owned banks will raise around 450 billion rupees ($5.25 billion) through qualified institutional placement (QIP) of shares to institutions in the financial year ended March 2026, a government source told reporters on Wednesday.
State Bank of India SBI.NS, the country's biggest lender by assets, will launch its QIP soon, the source said.
($1 = 85.6900 Indian rupees)
(Reporting by Nikunj Ohri in New Delhi; Editing by Shailesh Kuber)
(([email protected];))
July 9 (Reuters) - Indian state-owned banks will raise around 450 billion rupees ($5.25 billion) through qualified institutional placement (QIP) of shares to institutions in the financial year ended March 2026, a government source told reporters on Wednesday.
State Bank of India SBI.NS, the country's biggest lender by assets, will launch its QIP soon, the source said.
($1 = 85.6900 Indian rupees)
(Reporting by Nikunj Ohri in New Delhi; Editing by Shailesh Kuber)
(([email protected];))
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Popular questions
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What does IDBI Bank do?
IDBI Bank provides a wide gamut of financial products and services encompassing deposits, loans, payment services and investment solutions. It is committed to understanding its customers’ needs and aims at consistently delivering relevant financial solutions and excellent customer service. The Bank provides a wide range of services on a round-the-clock basis through a wide range of digital channels such as Mobile Banking, Internet Banking, WhatsApp Banking, UPI, Debit Cards, Credit Cards, Point of Sale (PoS) terminals (both physical and digital), Internet Payment Gateway, ATMs, etc.
Who are the competitors of IDBI Bank?
IDBI Bank major competitors are Bank Of India, Indian Overseas Bank, Bank of Maharashtra, Canara Bank, Indian Bank, Bank Of Baroda, PNB. Market Cap of IDBI Bank is ₹88,600 Crs. While the median market cap of its peers are ₹1,19,279 Crs.
Is IDBI Bank financially stable compared to its competitors?
IDBI Bank seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does IDBI Bank pay decent dividends?
The company seems to be paying a very low dividend. Investors need to see where the company is allocating its profits. IDBI Bank latest dividend payout ratio is 29.59% and 3yr average dividend payout ratio is 28.73%
How has IDBI Bank allocated its funds?
Company has been allocating majority of new resources to productive uses like advances.
How strong is IDBI Bank balance sheet?
Latest balance sheet of IDBI Bank is strong, However historically the companies balance sheet has shown some weakness.
Is the profitablity of IDBI Bank improving?
Yes, profit is increasing. The profit of IDBI Bank is ₹9,318 Crs for TTM, ₹9,210 Crs for Mar 2026 and ₹7,631 Crs for Mar 2025.
Is IDBI Bank stock expensive?
IDBI Bank is not expensive. Latest PE of IDBI Bank is 9.51 while 3 year average PE is 14.66. Also latest Price to Book of IDBI Bank is 1.25 while 3yr average is 1.42.
Has the share price of IDBI Bank grown faster than its competition?
IDBI Bank has given lower returns compared to its competitors. IDBI Bank has grown at ~2.34% over the last 10yrs while peers have grown at a median rate of 5.18%
Is the promoter bullish about IDBI Bank?
Promoters stake in the company seems stable, and we need to go through filings and allocation of resources to gauge promoter bullishness. Latest quarter promoter holding in IDBI Bank is 94.71% and last quarter promoter holding is 94.71%.
Are mutual funds buying/selling IDBI Bank?
The mutual fund holding of IDBI Bank is increasing. The current mutual fund holding in IDBI Bank is 0.07% while previous quarter holding is 0.05%.