With the divestment process for IDBI Bank set to enter its final phase soon, sources aware of the development have said that it could be a closely fought battle between all four institutions that have so far shown interest in the lender.
People close to the development told Moneycontrol on condition of anonymity that all four - Dubai's government-owned Emirates NBD, Prem Watsa's Fairfax India Holdings, Kotak Mahindra Bank and Oaktree Capital Management - who were cleared by the Reserve Bank of India as ‘fit and proper’ to bid for IDBI Bank are expected to participate in the financial bidding process.

“Emirates and Fairfax could be neck-to-neck in terms of the bidding process, and both seem equally interested and keen on IDBI Bank,” said one banker involved in the process. However, it appears that Kotak Mahindra Bank may not be too far behind in terms of interest in the bidding process and may be conducting a final due diligence on IDBI Bank.

Emails sent to Emirates NBD, Kotak Mahindra Bank and Fairfax India Holding remained unanswered till publishing the article. “We would like to decline to comment on behalf of Oaktree,” said a spokesperson for the company.

Moneycontrol had reported in January this year that KPMG, the consultant to the divestment process, is conducting a closing due diligence on IDBI Bank. This process concluded around April this year and a report was shared with all the four candidates who cleared the RBI’s fit and proper test. Subsequently, some of the bidders too have conducted their final rounds of due diligence.
One of them is currently conducting diligence on the bank and is in the last stages of concluding the process,” said one source close to the development. “Once this candidate has completed the diligence, submission of financial bids will be called for, which is the last stage for identifying a successful bidder for the bank,” another person aware of the matter said.

If matter progresses at the current pace, it is anticipated that the Department of Investment and Public Asset Management (DIPAM) may call for financial bids during October.

In an interview to Network18 on September 5, Finance Minister Nirmala Sitharaman had indicated that divestment of IDBI Bank is on-track and is expected to conclude by March 2026.