India is set to halt the sale of a majority stake in IDBI Bank Ltd. after both bids received fell below the government's minimum price threshold, according to sources familiar with the matter. The state-owned lender had been seeking to divest its controlling interest as part of broader privatization efforts.

The failed auction represents a setback for India's privatization agenda, which has been struggling to attract competitive bids for several public sector assets. IDBI Bank has been under government control since 2019 when it was rescued from financial distress, and officials had hoped to find a strategic buyer to revitalize the institution.

Sources indicate the bids submitted were deemed unviable by the government, though specific amounts were not disclosed. The decision to scrap the sale highlights the challenges facing India's divestment program, particularly in the banking sector where legacy issues and regulatory constraints may be deterring potential investors.