ING Evaluates its Return to India By Purchasing Controlling Stake in IDBI Bank

According to an Indian media report, ING is considering a return to India by purchasing a controlling stake in IDBI Bank, four years after leaving the country after selling its stake in Kotak Mahindra Bank.

Emirates NBD's reported bid to acquire IDBI Bank may face stiff competition, as Dutch banking group ING is also believed to have entered the fray.

According to sources, ING is considering a return to India by purchasing a controlling stake in IDBI Bank, four years after leaving the country after selling its stake in Kotak Mahindra Bank.

However, the report was unclear about the status of ING's expression of interest (EoI) for IDBI Bank.

“One of the officials said ING has submitted, while the other said it would do so at a later stage,” the report said.

The deadline for submitting Expressions of Interest was January 7.

Earlier this month, media reports stated that Emirates NBD and Canada's Fairfax Group submitted expressions of interest (EOI) to purchase the 60.7 percent majority stake offered by the Government of India and Life Insurance Corporation (LIC) of India.

Though it was unclear whether some of the prospective bidders, including ING, met the deadline, Indian media reports citing official sources stated that the government may consider good offers that come in later as it seeks to maximise value.

In a previous tweet, the Secretary, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, stated that the government had received multiple expressions of interest (EOIs) for IDBI Bank and that the sale process is now expected to move to the second stage.

The interested parties must now wait for the Reserve Bank of India (RBI) to review the applications and determine whether they meet the central bank's 'fit and proper' criteria.

Emirates NBD's reported bid for IDBI follows its July 2019 acquisition of DenizBank, Turkey's largest private bank.

The acquisition assisted the UAE bank in expanding its presence to 13 countries and adding more than 17 million customers.

The news of Emirates NBD's interest in the Indian bank came just a few days after it was revealed that Abu Dhabi-based First Abu Dhabi Bank (FAB) was considering buying Standard Chartered Bank.

IDBI Bank has 1,940 branches, 1,416 centres, and 3,343 ATMs across India. As of Friday's stock market close, the market capitalization was INR634.93 billion ($7.72 billion).