Kotak Mahindra Bank has emerged as the frontrunner to acquire the government’s stake in IDBI Bank, according to senior Finance Ministry officials. Sources indicate that the Reserve Bank of India has granted ‘fit and proper’ approval to the shortlisted bidders, clearing a key regulatory hurdle in the disinvestment process. The government and LIC together hold more than 60 percent in IDBI Bank, which they plan to sell as part of a broader push to reduce public sector ownership in financial institutions.If finalized, the deal would mark a significant expansion for Kotak Mahindra Bank, strengthening its presence in retail and SME lending while giving it access to IDBI’s extensive branch network. The acquisition would also represent one of the biggest banking privatizations in India in recent years, underlining New Delhi’s commitment to reforms aimed at improving efficiency and attracting private capital into the financial sector.