Emirates NBD ‘interested’ in IDBI Bank stake

Emirates NBD, Dubai’s largest bank by assets, has reportedly submitted an expression of interest to acquire a major stake in India’s IDBI Bank.

A 60.72 percent holding in the Indian state-owned lender will be offloaded for $7.1 billion, as talks with potential bidders reach an advanced stage, Bloomberg reported, citing unidentified sources.

The Indian government is slated to launch the bidding process as early as this month, the report said.

Other shortlisted bidders include India’s Kotak Mahindra Bank and Canada’s Fairfax Financial Holdings.

The government will divest a 30.48 percent stake, while state-owned Life Insurance Corp of India will sell 30.24 percent, local newspapers quoted minister of state for finance Pankaj Chaudhary as telling parliament this week.

Last week Emirates NBD chief executive Shayne Nelson said the bank would expand its wealth management, investment banking and small-business services in India following its $3 billion acquisition of Mumbai-based RBL Bank.

Further reading:

• Why Gulf investors are snapping up Indian banks
• UAE and India in talks to expand annual trade beyond $100bn
• Indian companies turn to the UAE to avoid Trump tariffs

In October the Dubai-listed lender, which is majority-owned by the emirate’s sovereign wealth fund, agreed to buy 60 percent of RBL.

Emirates NBD’s shares closed nearly 4 percent higher at AED26.15 on Thursday, up about 22 percent year-to-date.