RBI issues ‘fit & proper’ certificates to potential IDBI Bank suitors: Report

Kotak Mahindra Bank may be reconsidering its pursuit of IDBI Bank at this time

The Reserve Bank of India (RBI) has granted ‘Fit & Proper’ certificates to three potential suitors for IDBI Bank, paving the way for their possible acquisition of the bank, CNBC-TV18 reported quoting sources. The candidates include Fairfax Financial, Emirates NBD, and Kotak Mahindra Bank.

Despite this development, Kotak Mahindra Bank may be reconsidering its pursuit of IDBI Bank at this time, CNBC-TV18 addedd The bank’s interest in the acquisition remains uncertain, as it evaluates its strategic priorities.

Fairfax and Emirates NBD remain strong contenders in the race for IDBI Bank, as they prepare for the next steps in the acquisition process.

IDBI Bank had received banking regulator RBI's nod for the 'fit & proper' criteria for privatisation, and likely bidders for the strategic sale are expected to begin the process of due diligence early August, CNBC-TV18 reported citing sources.

On January 8, 2023 Moneycontrol was the first to report that Prem Watsa led Fairfax Group and Emirates NBD had submitted EOIs for a majority stake in IDBI Bank.