IFC amongst top runners to acquire stake in IDBI Bank

International Finance Corporation, the World Bank's private lending arm has emerged as the front runner to acquire stake in the government owned IDBI Bank. IFC has emerged as top contender to buy 15 per cent stake in IDBI. Currently, the Government of India holds 74 per cent stake in the bank.

Three major players are also in the race in the acquisition, namely GIC of Singapore, Asian Development Bank and Commonwealth Development Corporation. However, IFC is well ahead of others and is in the final stage of negotiation for the acquisition.

The due diligence of the acquisition has not yet started as the Centre is still in the process of finalising the approvals of the merger of SBI and its associates. The government this year is planning to reduce its stake in the PSU. According to PTI, the centre is open to reduce its stake in IDBI as much as 50 per cent.

The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries. The IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States.

On the contrary, IDBI Bank is an Indian government-owned financial service company, formerly known as Industrial Development Bank of India, headquartered in Mumbai, India. It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry.

It is currently the 10th largest development bank in the world in terms of reach, with 3340 ATMs, 1848 branches, including 1 overseas branch at Dubai, and 1378 centres. It is one of the 27 commercial banks owned by the Government of India.

The shares of the Bank on Monday, have opened positive and are trading at Rs 67.05, up by 0.98 per cent.