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Dutch banking group ING is planning to return to India by buying a controlling stake in the state-owned lender IDBI Bank, The Economic Times reported On Wednesday.
Citing two people familiar with the development, the publication reported that ING top brass were in New Delhi recently to discuss the matter with senior officials.
The government and the Life Insurance Corporation of India together may sell 60.72 per cent of IDBI Bank.
Five to 7 prospective candidates – like Japan’s SBMC and Oaktree Capital — are believed to have submitted EoIs before the deadline ended on January 7. One of the people mentioned above said ING has submitted an expression of interest (EoI) for buying the stake in IDBI Bank, but the other person said it would do so at a later stage.
It’s not clear whether ING met the deadline. However, ET reported that the government may consider “good offers” that come even after the deadline has expired. Industry observers said the RBI, too, would be inclined to the idea of global banks like ING making IDBI a subsidiary instead of opening a branch.
“As a matter of policy, we do not respond to market rumours or speculations,” Raymond Vermeulen, head of external communications and media relations at ING Group, told the publication in response to its detailed questionnaire.
On January 10, ING said in an investor note that India is poised to do better than most of its Asian peers in 2023 as proactive policy puts the country in a good position to benefit from easier conditions during the year.
“India’s lesser reliance on trade with China also provides a buffer, while a rethink on global bond market inclusion for government securities could see substantial capital inflows,” said Robert Carnell, regional head of research, Asia-Pacific, ING.
In October last year, the government invited bids from potential buyers for a 60.72 per cent stake in IDBI Bank. The government and LIC together hold 94.71 per cent in the lender.
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