IDBI Bank stake sale narrows to Fairfax and Kotak as integration risks loom

IDBI Bank’s stake sale has narrowed to Fairfax and Kotak, as technology, branch rationalisation, and balance-sheet integration challenges temper broader bidding interest.

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IDBI Bank stake sale narrows to Fairfax and Kotak as integration risks loom

IDBI Bank stake sale narrows to Fairfax and Kotak as integration risks loom
With bidding for IDBI Bank nearing closure, the race has narrowed to Fairfax Holdings and Kotak Mahindra Bank, underscoring the complexity of the transaction rather than a shortage of capital. Kotak faces operational hurdles in rationalising IDBI’s branch heavy footprint and integrating technology, while the bank’s high credit deposit ratio limits deposit led appeal.