L&T Finance Holdings is eyeing stake in state-run IDBI Bank , a deal which will give the finance company its long-desired foothold in the Indian banking space.
Sources have told CNBC-TV18 that L&T Finance Holdings would like to effect a "reverse merger" with IDBI Bank. A deal, of course, is far from given, as there are a number of players who are said to buy stake in the bank, such as World Bank's IFC, Abu Dhabi Investment Authority, UK's CDC Group and Singapore's GIC.
Further, IDBI employees, too, have protested against the government's proposal to privatise the bank, a move that was announced by Finance Minister Arun Jaitley in the Union Budget.
A deal with L&T Finance Holdings, however, will be a booster for the non-banking financial company's stated ambition to turn itself into a bank.
The company had also applied for a small finance bank licence last year but didn't get the RBI nod.
Sources have told CNBC-TV18 that L&T Finance Holdings would like to effect a "reverse merger" with IDBI Bank. A deal, of course, is far from given, as there are a number of players who are said to buy stake in the bank, such as World Bank's IFC, Abu Dhabi Investment Authority, UK's CDC Group and Singapore's GIC. 
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