Kotak Mahindra Bank has questioned IDBI Bank’s valuation amid India’s slow-moving privatisation plan. This shows there is a gap between what sellers want and what buyers are willing to pay, even though the government says the process is still on track.
Ashok Vaswani has said that the price being asked for a stake in IDBI Bank seems too high. His comments show that many potential buyers are hesitant, mainly because of the price. A finance ministry official said all options are still open, but the delay suggests the deal could take longer than planned.
Vaswani also pointed out another urgent issue for banks: the fast-growing use of artificial intelligence in cyberattacks. He said that attacks are now happening much faster, moving from human speed to machine speed. Because of this, banks need to rethink their defenses, since old systems may not be enough anymore.
He said that advanced AI tools are enabling quicker, harder-to-stop cyberattacks, which puts more pressure on banks to improve their systems. This is a problem for all banks, not just one. Finance Minister Nirmala Sitharaman has already asked banks to strengthen their defenses, report suspicious activity quickly, and work together to handle new risks.
Even with these challenges, Kotak Mahindra Bank reported steady results. The bank reported a net profit of ₹4,027 crore in the March quarter, up from last year and the previous quarter. Loans and deposits also grew well, though the bank expects some margin pressure soon.
Vaswani also discussed global uncertainties, including tensions in West Asia. He said these have not affected the bank’s performance so far, but warned that risks still exist. The bank is closely monitoring the situation and working with customers to prepare for any potential issues.
Overall, there are both opportunities and challenges. Privatisation efforts, such as IDBI Bank, remain important to India’s financial plans. At the same time, new technology risks and global uncertainties mean banks must stay alert and adapt quickly.
