Japan's SMBC Bank, Oaktree Capital show interest in IDBI Bank stake sale: Report

Prospective buyers have shown healthy interest in sale of IDBI Bank, DIPAM secretary had said.

Sumitomo Mitsui Banking Corporation Group (SMBC Bank) and Oaktree Capital Management have shown interest in the IDBI Bank stake sale. The two have submitted an expression of interest (EoI) for the strategic sale of the bank, according to a report in The Economic Times.

The IDBI Bank stake sale is underway and is likely to be completed in the next fiscal. The government will offload 30.48 per cent of its stake in the bank and the LIC will sell 30.24 per cent.

The Centre holds over 45 per cent stake in the bank. In a recent move, SEBI gave its nod to reclassifying government’s remaining stake after the sale as public making the offer lucrative for prospective buyers.

DIPAM secretary Tuhin Kanta Pandey has expressed confidence in the sale of the IDBI Bank.

“We have had good response to IDBI Bank. As per our process, we don’t reveal the names and number of EOIs received,” Tuhin Kanta Pandey, secretary in the Department of Investment and Public Asset Management, told Moneycontrol earlier.

The next stage will include a fit-and-proper test by the RBI and due diligence.

“So that we don’t get into any difficulties in the future, the qualified parties will have to be tested by the RBI. Only then will we move to the due diligence stage. This stage will be taken only after they pass the test by RBI,” said Pandey.