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ING planning return to India by buying controlling stake in IDBI Bank

January 19, 2023

ING planning return to India by buying controlling stake in IDBI Bank
Dutch banking group ING is planning to return to India by buying a controlling stake in the state-owned lender IDBI Bank, The Economic Times reported On Wednesday.

Citing two people familiar with the development, the publication reported that ING top brass were in New Delhi recently to discuss the matter with senior officials.

The government and the Life Insurance Corporation of India together may sell 60.72 per cent of IDBI Bank.

Five to 7 prospective candidates like Japan’s SBMC and Oaktree Capital are believed to have submitted EoIs before the deadline ended on January 7. One of the people mentioned above said ING has submitted an expression of interest (EoI) for buying the stake in IDBI Bank, but the other person said it would do so at a later stage.

It’s not clear whether ING met the deadline. However, ET reported that the government may consider “good offers” that come even after the deadline has expired. Industry observers said the RBI, too, would be inclined to the idea of global banks like ING making IDBI a subsidiary instead of opening a branch.

“As a matter of policy, we do not respond to market rumours or speculations,” Raymond Vermeulen, head of external communications and media relations at ING Group, told the publication in response to its detailed questionnaire.

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