March 13 (Reuters) - India will shelve the bids it received for a majority stake sale in IDBI Bank, as the offers received were below the government's minimum price expectation, a government source told Reuters.
The Indian government and state-owned Life Insurance Corporation of India had initiated the process to sell 60.7% of the lender in 2022.
India's government owns 45.48% of IDBI Bank, while LIC holds 49.24%.
The existing sale process would be scrapped as the bids received were below the so-called reserve price, or the minimum sale price, set for the sale, the source said.
Bloomberg News reported the development first.
The government may initiate a fresh process when the market appetite improves and there is strong interest among buyers, the source added.
IDBI Bank and India's finance ministry didn't immediately respond to a Reuters request for comment outside regular business hours.
Reuters had reported that the planned sale of IDBI Bank had attracted bids from Canadian investment group Fairfax Financial and Emirates NBD.
Tepid interest in acquiring the lender controlled by LIC contrasts with strong foreign investor appetite underscored by Dubai-based Emirates NBD's $3 billion purchase of a 60% stake in RBL Bank and Sumitomo Mitsui Banking Corp's acquisition of a 24% stake in Yes Bank.
(Reporting by Nikunj Ohri and Anna Peverieri; Editing by Louise Heavens)
