Kotak Mahindra Bank has formally stated that it has not participated in the financial bidding process for the strategic disinvestment of IDBI Bank, addressing circulating media reports. In an official communication to the stock exchanges, the private sector lender stressed that the clarification is being issued in accordance with SEBI Listing Regulations, 2015, reaffirming its commitment to transparency and adherence to regulatory norms.
The Finance Ministry, through the Department of Investment and Public Asset Management (DIPAM), confirmed that financial bids have been received for the IDBI Bank stake and are currently under evaluation. However, details of the bidders and their proposals have not been disclosed. The government has reiterated that the evaluation will follow the prescribed procedures for strategic disinvestment, aligning with its broader agenda of privatisation and asset monetisation.
Kotak Mahindra Bank indicated that the clarification follows unusual fluctuations in its share price on 6 February 2026. The lender reaffirmed its commitment to full transparency, stating that it will continue to provide all disclosures required under regulatory guidelines to keep investors and stakeholders informed.
In its official filing, the bank confirmed: “Kotak Mahindra Bank has not submitted a financial bid in connection with the IDBI Bank disinvestment process.” The statement, issued under Regulation 30(11) of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, underscores the bank’s dedication to strict compliance with market rules and regulatory obligations.
The strategic disinvestment of IDBI Bank is being pursued jointly by the Government of India and the Life Insurance Corporation of India (LIC). The process has garnered significant attention from the financial community, given its potential to reshape the ownership structure of the state-backed lender and encourage increased private sector participation in India’s banking sector.
Market analysts have noted that the IDBI Bank divestment represents a critical test case for India’s efforts to encourage private investment in public sector banks, potentially influencing investor sentiment and future strategic sales. By issuing the clarification, Kotak Mahindra Bank has sought to dispel rumours and maintain market stability while regulatory evaluations continue.
The bank’s statement underscores the importance of transparency in high-profile privatisation efforts and reflects the ongoing scrutiny of India’s banking sector as the government seeks to reduce its direct ownership in state-owned financial institutions. |
