IDBI Bank tumbles amid reports strategic stake sale may be scrapped

IDBI Bank plunged 15.62% to Rs 77.80 after reports suggested that the government's plan to sell its stake in the lender may have been scrapped.

According to media reports, financial bids from potential buyers were lower than the reserve price set by the inter-ministerial group on disinvestment in the finance ministry. The price was approved by the core group on disinvestment chaired by the Cabinet Secretary.

The government and Life Insurance Corporation of India (LIC) were planning to sell a 60.72% stake in IDBI Bank. The Centre and LIC proposed parting with 30.48% and 30.24% stakes, respectively. The Centre currently holds 45.48% in the lender while LIC owns 49.24%.

The strategic disinvestment process began in October 2022 when the government and LIC invited expressions of interest (EoI) from potential investors. Financial bids were reportedly submitted on 6 February after shortlisted bidders completed regulatory clearances and due diligence.

Media reports said bids were submitted by Fairfax, led by Prem Watsa, and Emirates NBD.

IDBI Bank was earlier rescued by LIC in January 2019. The insurer acquired a 51% controlling stake for about Rs 21,624 crore to address rising bad loans. After the transaction, the Reserve Bank of India classified IDBI Bank as a private sector bank.

On a consolidated basis, IDBI Bank's net profit rose 0.31% to Rs 1954.09 crore while total income declined 3.21% to Rs 8,351.61 crore in Q3 December 2025 over Q3 December 2024.

Powered by Capital Market - Live News