The Reserve Bank of India (RBI) has started to evaluate the bids of at least five entities for a majority stake in IDBI Bank Ltd.

Kotak Mahindra Bank, Prem Watsa-backed CSB Bank and Emirates NBD are among those to have submitted expressions of interest, Reuters reported on Thursday.

The news led to the shares of the lender surging on the bourses: IDBI Bank rose 9.66 per cent, or Rs 4.55, to close at Rs 51.67 on the BSE on Thursday.

Close to 27.79 lakh shares were traded on the exchange, which are more than the two-week average of 4.12 lakh shares.

The stake sale is the first major disinvestment across state-owned banks as part of a broader privatisation plan and could fetch Rs 30,000 crore this year at the current market valuation.

Last month, the Department of Investment and Public Asset Management (Dipam) had said the disinvestment of IDBI Bank was on track. “The transaction continues to be on track as per the defined process in post-EoI stage following receipts of multiple EoIs,” Dipam secretary Tuhin Kanta Pandey had tweeted.

The Government and the LIC — which are together selling about 61 per cent stake in IDBI Bank — had received multiple EoIs in January.

Dipam in October had invited EoIs for selling a 30.48 per cent stake in IDBI Bank, along with the sale of 30.24 per cent of the shares with IDBI.

The government and LIC together hold a 94.72 per cent stake in IDBI Bank, which will come down to 34 per cent after the strategic sale.

The investors who have put in EoIs have reportedly submitted the documents to secure a fit and proper certificate from the RBI and security clearance from the Centre.

The Government expects the transaction to be completed in the second half of this fiscal.

Following the transaction, the Centre will own a 15 per cent stake and LIC 19 per cent in IDBI Bank, taking their total holdings to 34 per cent.

Record Q3

IDBI reported its best-ever quarterly numbers with a 60 per cent jump in net income at Rs 927 crore for the December quarter on growth in core business and a massive reduction in bad loans along with a strong margin.