India, March 23 -- The Government may consider selling a stake in IDBI Bank through the Offer-for-Sale (OFS) route to increase public shareholding, after the unsuccessful attempt to divest stake in the LIC-controlled lender, sources said.

Currently, the public float in IDBI Bank is only 5.29 per cent, limiting the scope of fair valuation.

The remaining shares are with insurance behemoth Life Insurance Corporation of India (LIC), with a controlling stake at 49.24 per cent, while the Government of India (GoI) holding stood at 45.48 per cent.

Earlier this month, the proposed sale of a 60.72 per cent majority stake, held jointly by the Government and the LIC, was scrapped after financial bids from two potential buyers reportedly fell short...