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IDBI Bank data room to open for bidders soon
May 17, 2023
The data room of IDBI Bank, which is on the block, will be opened to shortlisted bidders by next month and the financial bids are expected by September, according to official sources.
The government has got multiple expressions of interest (EoI) including from banks and these are currently being vetted by the Reserve Bank of India.
In the event of a bank winning the bid to acquire IDBI Bank, both banks will have to merge in the immediate aftermath as per a scheme approved by the RBI. Sources said there won’t be any relaxation in this norm.
Reports suggested that Kotak Mahindra Bank and Fairfax India Holdings (promoter of CSB Bank), which are in the fray for IDBI Bank, want 2-3 years window from the RBI before the eventual merger with IDBI Bank in case they get to acquire the private bank.
“Immediate merger is mandatorily required in case a bank wins the IDBI Bank bid,” an official said.
According to RBI guidelines, in case a bank/promoter of a bank acquires another bank, a merger scheme has to be put forward immediately and the regulator will determine how it will be done.
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