From Nikong Ohri

July 14 (Reuters) - India has received revised offers from Canada's Fairfax Financial and Emirates NBD to sell a majority stake in IDBI, two sources said, reviving a deal that stalled earlier this year over valuation expectations.

One of the sources said that the Indian government and the state-owned Life Insurance Corporation of India are about to sell a combined 60.7 percent stake in IDBI Bank, and that the deal is expected to be completed within a month.

The sale process stalled earlier this year after two bids submitted by Fairfax Financial and Emirates in March fell short of the government's expectations.

IDBI Bank stated in a filing to the stock exchanges on Tuesday that it could neither confirm nor deny reports regarding Fairfax Financial's offer, and that it had not received any communication from the government concerning the ongoing divestment process. Emirates NBD declined to comment.

A third source said the revised offers are under evaluation, and that a committee of senior officials met on Monday to discuss the sale of the stake.

The Indian government owns a 45.48 percent stake in IDBI Bank, while Life Insurance Corporation of India owns 49.24 percent.

One of the sources and a separate source said that Fairfax Financial is the frontrunner to acquire the bank and is in talks with the government, while the UAE is not seriously pursuing the deal after acquiring another Indian bank last year.

The Treasury, Life Insurance Corporation of India and Fairfax Financial have not yet responded to requests for comment.

The sources requested that their names not be mentioned in the report due to the sensitive nature of the issues they addressed.

The revised offers come amid growing interest from foreign investors in India’s financial sector.

Last year, Emirates NBD acquired a $3 billion stake in RBL Private Bank, while Japan’s MUFG Group bought a 20 percent stake in non-bank financial firm Shriram for $4.4 billion, representing some of the largest foreign investments in India’s banking sector.

(US Dollar = 96.2000 Indian Rupees)