Kotak CEO Flags IDBI Valuation Concerns as Privatization Drags

Kotak Mahindra Bank Ltd.’s chief executive said the valuation sought for a stake in IDBI Bank Ltd. was too high, underscoring tepid bidder appetite for IDBI even as Kotak Mahindra Bank reported better-than-expected fourth-quarter earnings on Saturday.

“The valuation being demanded was very, very high.” Chief Executive Officer Ashok Vaswani said at a media briefing. “It would have been difficult to swallow,” he added, signaling concerns around pricing.