Five international investment banks are in the race to buy just over a quarter of Industrial Finance Corporation of India, a state-run lender, in a deal that could be worth as much as $250m (€183m).

Barclays, BNP Paribas, Citi, Deutsche Bank and Lehman Brothers have indicated interest in taking part in the auction for up to a 26% stake in IFCI, according to Indian financial daily The Economic Times.