Kotak Mahindra Bank is advancing discussions to potentially acquire IDBI Bank, marking a major development in the Indian banking sector. After a period of relative silence in the bidding process, Kotak has re-emerged as a strong contender alongside international players such as Emirates NBD, Fairfax Financial, and Oaktree Capital. The government, which currently holds a 45.48% stake in IDBI Bank while LIC controls 49.24%, is looking to divest a controlling 60.72% stake, valued between $8-10 billion. Kotak’s active engagement in the process, including final rounds of due diligence, signals serious intent, especially as final bids are expected within the next quarter and a decision by the financial year’s end is likely.

The acquisition would not only provide Kotak with a significant expansion of its banking footprint but also reshape the competitive landscape among Indian lenders, given the scale and strategic value of IDBI Bank. The deal is anticipated to be one of the largest in India’s banking history and would grant the winner considerable influence over IDBI’s operations, subject to regulatory limitations on voting rights.