The last of the likely foreign suitors for IDBI Bank, JP Morgan, has walked out, and the Industrial Development Bank of India (IDBI), the promoter of the bank, is set to issue a 14 per cent preferential stake in the bank to the Small Industries Development of India (Sidbi) for around Rs 28 per share.
According to IDBI officials, the institution had informed the bank about the decision and Sidbi, which had passed a board resolution to this effect, had also written to both IDBI and IDBI Bank. IDBI Bank is likely to take up this issue at its next board meeting.
According to senior officials, the decision to bring in Sidbi was taken because JP Morgan had not come back to IDBI with a concrete proposal after the institution had sought clarifications on certain issues.
Three other foreign investors
