Authorities are exploring ways to revive interest from potential buyers after their long-running efforts to divest a majority stake in the $8 billion-valued IDBI Bank Ltd. hit a snag, according to people familiar with the matter.The government reportedly scrapped bids for IDBI Bank as they fell short of the minimum price. (HT)One of the options is to reduce the reserve price by as much as 20% after buyers balked in the previous round, which was halted in March, said one of the people, asking not to be identified as the details are not public. Efforts are underway to make a deal feasible, including setting a price that captures the bank’s intrinsic value and lowers the reliance on its share price, the people said.ALSO READ: RBI cancels Paytm Payments Bank licenceThe options are still preliminary and subject to change, the people said.The Narendra Modi-led government, which has not made public the minimum reserve price in the past, has been unsuccessful in selling the Mumbai-based lender for several years, dealing a potential setback to the divestment push of state-owned firms. A successful transaction would have marked the biggest government-backed disposal of a stake in a domestic bank in years.ALSO READ: From investment bank to gym desk, NYC graduate struggles in brutal job marketThe government scrapped bids for IDBI Bank as they fell short of the minimum price, according to people familiar with the matter. Fairfax Financial Holdings Ltd., founded by Indian-born Canadian billionaire Prem Watsa, was the frontrunner to buy the stake, while Emirates NBD PJSC had also bid, people said.Officials have also indicated their intention to restart the sale process with interested bidders, including Fairfax, one of the people said. IDBI Bank’s shares have shed about 32% this year, underperforming a 10% decline in the Nifty Bank Index.The finance ministry and IDBI Bank did not respond to requests for comments. Fairfax did not respond to an email query from Bloomberg News.Indian Finance Minister Nirmala Sitharaman said in April authorities will continue with the divestment. The government and state-run Life Insurance Corporation of India together own about 95% of IDBI Bank, and planned to sell a combined 60.7% stake.Kotak Mahindra Bank Ltd. was initially interested in IDBI Bank but did not put in a bid as the valuation was too high. The bank had shown a so-called expression of interest in IDBI Bank and received a fit-and-proper criteria by India’s central bank, but did not submit a bid.Authorities are assessing whether additional bidders can be brought into the process, although that may require fresh “fit and proper” approvals from the Reserve Bank of India, potentially pushing back timelines, the people said. So far, smaller stake sales or an offer-for-sale route are not under consideration, they said.