IDBI Bank Share Price: Shares of IDBI Bank witnessed a sharp decline in the stock market after reports suggested that the proposed strategic sale of the bank might not move forward. On Monday, March 16, the stock dropped significantly during early trading, falling by more than 16 percent on the National Stock Exchange. The share price touched a low of around ₹77 during intraday trading.
The sudden fall came after news reports indicated that the government’s plan to sell a majority stake in IDBI Bank may have been called off because the financial bids received from interested buyers were reportedly lower than the reserve price set for the deal. However, later in the day, the bank issued an official clarification to address the reports circulating in the media.
IDBI Bank’s Official Response to the Reports
In its clarification, IDBI Bank stated that the strategic disinvestment process is confidential and is being handled directly by the Government of India. Because of the confidential nature of the process, the bank said it is not in a position to confirm or deny the reports claiming that the stake sale has been cancelled.
The bank also mentioned that it has not received any official communication from the government regarding the cancellation of the strategic disinvestment plan. According to the statement released by the bank, it is currently unaware of any development that would confirm the claims mentioned in the news reports.
IDBI Bank further added that if any significant information related to the disinvestment process is officially communicated, it will immediately inform the stock exchanges as required by regulatory rules.
Role of Government and DIPAM in the Stake Sale
At the same time, the bank has also clarified that the entire disinvestment process is being handled by the Department of Investment and Public Asset Management (DIPAM), which is a department of the Ministry of Finance.
As such, IDBI Bank is not handling the disinvestment process on its own since the process is being handled by government authorities. It is in this context that the bank has also clarified that there is no direct impact of the reports on the institution since they are not handling the process.
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What Earlier Reports Suggested
As per some reports based on sources, the government and Life Insurance Corporation of India (LIC) planned to sell 60.72 percent shares in IDBI Bank.
In this regard, the process for the sale of shares in IDBI Bank started in October 2022. In this context, the government issued an Expression of Interest (EoI) for those interested in purchasing shares in IDBI Bank. The plan involved selling 30.48 percent stake held by the government and 30.24 percent stake held by LIC.
Financial bids for the bank were reportedly submitted on February 6. However, the bids were said to be lower than the reserve price set by an inter-ministerial group responsible for overseeing the disinvestment process.
The group responsible for setting the reserve price includes senior officials from the Finance Ministry and other government departments. The final decision regarding the sale also involves approval from a core committee on disinvestment chaired by the Cabinet Secretary.
Reports suggested that companies such as Fairfax Financial Holdings, led by investor Prem Watsa, and Emirates NBD, a Dubai-based bank, had submitted bids for acquiring a controlling stake in IDBI Bank.
Current Ownership Structure of IDBI Bank
At present, the government and LIC together hold a major stake in IDBI Bank. Combined, they control 94.71 percent of the bank’s shares.
• Government of India: 45.48 percent stake
• Life Insurance Corporation (LIC): 49.24 percent stake
The proposed disinvestment plan aimed to reduce this combined ownership by selling a 60.72 percent stake to a strategic investor.
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Background of LIC’s Acquisition of IDBI Bank
The involvement of LIC in IDBI Bank goes back to 2019. At that time, the insurance giant acquired a 51 percent controlling stake in the bank to help rescue it from financial difficulties caused by a large amount of bad loans.
LIC invested around ₹21,624 crore in the bank as part of the restructuring process. After the acquisition, the Reserve Bank of India classified IDBI Bank as a private sector bank.
Later, in December 2020, LIC reduced its holding to 49.24 percent, which led to the bank being reclassified as an associate company of LIC.
IDBI Bank Financial Performance in Q3 FY26
For the quarter ending December 2025, IDBI Bank reported a profit of ₹1,935 crore, which was nearly unchanged compared to ₹1,908 crore reported during the same period in the previous financial year.
However, the bank’s total income declined slightly during the quarter. Total income stood at ₹8,282 crore, compared to ₹8,565 crore in the same quarter last year.
Interest income also fell during the period, dropping to ₹7,074 crore, compared to ₹7,816 crore in the previous year.
On a positive note, the bank showed improvement in asset quality. The gross non-performing asset ratio also improved to 2.57 percent compared to 3.57 percent of the previous year.
The net non-performing asset ratio remains unchanged at 0.18 percent.
Furthermore, the capital adequacy ratio of the bank also increased to 24.63 percent compared to 21.98 percent as of last December 2024. Meanwhile, the Return on Assets of the bank slightly decreased to 1.83 percent compared to 1.99 percent of the previous year.
Disclaimer
This article is intended only for informational purposes and should not be considered financial or investment advice. Investors should consult a qualified financial advisor before making any investment decisions.
FAQs
1. Why did the IDBI Bank share price fall?
The IDBI Bank share price dropped sharply after reports suggested that the proposed strategic sale of the bank may not proceed. Financial bids reportedly came below the reserve price set for the disinvestment process.
2. Has the IDBI Bank stake sale been cancelled?
IDBI Bank clarified that the strategic disinvestment process is being handled by the Government of India. The bank stated that it has not received any official communication about cancelling the stake sale.
3. What stake do the government and LIC hold in IDBI Bank?
Currently, the Government of India holds around 45.48% stake in IDBI Bank, while Life Insurance Corporation (LIC) owns about 49.24%. Together, they control around 94.71% of the bank.
4. What was the IDBI Bank disinvestment plan?
The government and LIC planned to sell a combined 60.72% stake in IDBI Bank to a strategic investor. The process began in October 2022 with an Expression of Interest for interested buyers.
5. How did IDBI Bank perform financially in Q3 FY26?
IDBI Bank reported a profit of ₹1,935 crore in Q3 FY26. The bank also improved its gross NPA ratio to 2.57%, showing better asset quality compared to the previous year.
