India Weighs 20% IDBI Bank Price Cut to Revive $8 Billion Stake Sale

3 articles · Updated · Bloomberg · May 18

India is considering cutting IDBI Bank’s reserve price by as much as 20% after buyers balked and the latest sale round was halted in March.
The move is aimed at reviving a long-running divestment of a majority stake in the lender, which is valued at about $8 billion.
Officials are also working on a pricing structure that better reflects the bank’s intrinsic value and reduces reliance on its market share price.
The review underscores India’s struggle to complete the IDBI sale despite repeated efforts to attract credible bidders.

With IDBI Bank's sale stalled by legacy risks, is a price cut a real solution or just a discount on deep-rooted problems?

As its key bank privatization test falters, what is the unstated Plan B for India's ambitious banking reform agenda?