MUMBAI, Jan 30 (Reuters) -

India's federal government has set a February 5 deadline for

financial bids for IDBI Bank as it looks to divest a

majority ‌of its holding in the lender, according to two sources

familiar with ​the matter.

The deadline has been communicated to bidders ‍who are

eligible for bidding, suggesting that ⁠the process ⁠of

disinvestment in IDBI Bank has entered its final phase.

The central ‌bank had approved Fairfax Financial ( FRFHF ) ​Holdings,

Emirates NBD and Kotak Mahindra Bank as eligible

bidders in 2024, Reuters had previously ⁠reported. The divestment

process has ‍been underway ​since then, with the government trying

to finalize the details of the stake sale process.

The government ‍had earlier said that it hoped to complete

the stake sale process, which began in 2022, by March 2026.

The government, which owns 45.48% in IDBI Bank, and

state-owned Life Insurance Corporation of India ​which

holds ‍49.24%, together plan to sell 60.7% of the lender.

As part of the stake sale, the ​successful bidder will be

allowed to rename the bank, a separate source familiar with the

process said.

IDBI Bank had to be rescued by the state-owned insurer in

2019 after a surge in bad loans at the lender.

An email ​sent to the federal finance ministry, under which

the divestment process falls, was not immediately answered.