The Indian government’s attempt to sell a majority stake in IDBI Bank has been put on hold after the bids received did not meet the minimum price threshold, reported Bloomberg.

The privatisation process has been suspended for now, with details remaining confidential and no response from the Finance Ministry to requests for comment.

While the identities of the bidders were not officially disclosed, previous reports indicated that Fairfax Financial and Emirates NBD were among those seeking to acquire a controlling interest.

The 61% stake slated for sale held jointly by the government and Life Insurance Corporation of India (LIC) is estimated to be worth about $6.5bn at current market valuations.

At present, the government owns 45.48% of IDBI Bank, and LIC holds 49.24%.

Efforts to reduce state involvement in the banking sector have included attempts to privatise IDBI Bank, which has shown signs of recovery in recent years due to improved asset quality and capital support.

Sources suggest that a fresh sale process may be considered once market conditions are more favourable and buyer interest increases, according to  Reuters. 

Some recent foreign investments in India’s banking sector have attracted significant attention, such as Emirates NBD’s purchase of a 60% stake in RBL Bank for $3bn and Sumitomo Mitsui Banking Corp’s acquisition of a 24% holding in Yes Bank. 

Separately, the Reserve Bank of India granted approval for Asia II Topco XIII, a Singapore-based Blackstone affiliate, to acquire up to 9.99% of Federal Bank’s paid-up share capital or voting rights.