ENBD eyeing another bank acquisition in India? India is preparing to invite bids as early as this month for an INR 595 bn (USD 7.1 bn) majority stake sale in Mumbai-based and state-owned IDBI Bank, Bloomberg reports. Emirates NBD has received “fit-and-proper clearance” from the central bank for its bid. Mumbai-based Kotak Mahindra Bank and Toronto’s Fairfax Financial Holdings are also bidding.

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The 60.72% stake — 30.48% held by the government and 30.24% by state-owned LifeInsurance Corporation of India (LIC) — includes management control of the bank. Talks with the three bidders are in advanced stage and the formal bidding process could open before the end of the year, Bloomberg added.

Timeline: The government aims to finalize a strategic buyer by March 2026, although delays linked to clearance processes could shift timelines. The shortlisted bidders are currently conducting due diligence.

Why it matters: If completed, the stake sale would mark one of India’s largest privatizations in the banking sector in decades. Bloomberg seems to think Kotak Mahindra Bank is the stronger contender but is unlikely to proceed if valuation expectations rise significantly.

Our take: Emirates NBD is continuing to evaluate avenues in Indian banking following its announcement that it would seek a majority stake in RBL Bank. ENBD is looking for a strategic foothold in India’s capital market as the country’s credit needs are likely to grow exponentially in the coming years.

Other Gulf investors are keen for a piece of India’s financial sector. Earlier this year, Abu Dhabi-based International Holding Company (IHC) picked up a controlling stake in Sammaan Capital for USD 1 bn.

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