Foreign lenders attracted by rare stake sales in India banks


IDBI Bank has seen Emirates, Canada’s Fairfax Group, as well as local rival Kotak Mahindra Bank express interest. — Reuters

TALKS to sell majority stakes in two Indian banks have attracted interest from foreign peers in Japan and the Middle East betting on a fast-growing economy, but tighter regulations and valuation concerns could curb their appetite, say analysts and sources.

The rare opportunity for foreign banks to take controlling stakes in a market dominated by state-owned banks comes as existing investors in Yes Bank and IDBI Bank look to divest their holdings.

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