IDBI Bank shares gain as govt nears final stages of stake sale process

Mumbai, June 30 (IANS) Shares of IDBI Bank rose by 4 per cent to Rs 105 apiece on Monday after reports suggested that the government is preparing to invite financial bids for the lender.

This move signals fresh momentum in the much-delayed disinvestment process of the bank.

However, the share price consolidated later and was trading at Rs 104.26, up by Rs 2.94 or 2.90 per cent on the National Stock Exchange (NSE) around 1:50 p.m.

The bank was yet to comment on the reports.

According to reports, the Centre is close to finalising the share purchase agreement with potential buyers and may soon seek approval from the ministerial panel that oversees such deals.

The IDBI Bank stake sale, which has been delayed multiple times over the past three years, is considered a key part of the government’s wider push for privatisation and asset monetisation.

At present, the Union government and Life Insurance Corporation of India (LIC) together own nearly 95 per cent of the bank.

Of this, 60.72 per cent is up for sale as part of the ongoing disinvestment plan. In a shift from earlier years, the Union Budget 2025 did not set a specific disinvestment target.

Instead, the government grouped earnings from disinvestment and asset monetisation under a single category called ‘miscellaneous capital receipts,’ with a target of Rs 47,000 crore for the financial year.

In the last fiscal year, the government managed to raise around Rs 30,000 crore through disinvestment.

Officials are hopeful that big-ticket sales like IDBI Bank will help boost revenues in FY26.

From a market perspective, IDBI Bank has performed strongly in 2025. Its stock has gained around 35 per cent so far this year.

The bank’s financial results have also remained solid. In the January-March 2025 quarter (Q4 FY25), IDBI Bank reported a 26 per cent year-on-year (YoY) increase in net profit at Rs 2,051 crore compared to Rs 1,628 crore in the same period previous year (Q4 FY24).

However, the Net Interest Income (NII) dropped 11 per cent to Rs 3,290 crore from Rs 3,688 crore a year earlier.

--IANS

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