IDBI Bank shares surged 6% to ₹93.39 on Wednesday, marking the fifth consecutive trading day of gains with the stock soaring 16% during this period. The banking stock opened at ₹82.24 and rallied to hit an intraday high of ₹93.39 on the NSE, with the stock demonstrating strong momentum despite being down nearly 145% on a year-to-date basis. As per Business Standard, the stock recorded volume of 16.79 million equity shares on the NSE and BSE, representing a huge surge over the average daily volume. At 11:12 AM, IDBI Bank was trading 4.6% higher at ₹92.22, compared to 0.18% gain in the BSE Sensex. The stock had previously hit a 52-week high of ₹118.45 on January 5, 2026, showing consistent upward momentum.
Market sources told NDTV Profit that the IDBI Bank-Fairfax deal will be announced very soon as 'It's almost a done deal'. According to the latest reports, only a few final clearances are required before the transaction moves to the Cabinet, with the file currently with the Finance Minister. 'It should go to the Cabinet this week or next. The file is currently with Finance Minister,' sources said. However, IDBI Bank has now clarified its position regarding the strategic disinvestment process following a BSE query on August 25 regarding significant increase in trading volumes. In its response, the lender stated that 'the process of strategic disinvestment of the Bank is being handled by DIPAM, and in this regard, the Bank has immediately made disclosures to the Stock Exchanges informing the developments from time to time'. The bank emphasized that 'there is no undisclosed/price sensitive information or any impending announcement which needs to be informed to the exchange at this point of time' and confirmed it has 'immediately made disclosures to the bourses informing the developments on its divestment from time to time'. The bank further assured the BSE that it 'shall continue to promptly inform the exchanges of all material events/information/actions as required under Listing Obligations and Disclosure Requirements (LODR) Regulations'.
IDBI Bank reported strong Q4 FY26 results with net profit rising 5.35% to ₹2,127.14 crore compared to ₹2,019.18 crore in the previous quarter, while total operating income grew 7.44% to ₹7,549.28 crore. The bank's net interest income (NII) surged 17% to ₹3,851 crore in Q4 FY26, with net interest margin (NIM) improving to 4.15% from 4.00% in the previous quarter. Total deposits increased 12% YoY to ₹3,47,163 crore as of March 31, 2026, while net advances grew 16% YoY to ₹2,53,626 crore. The gross NPA ratio improved significantly to 2.32% from 2.98% in the previous year, with the net NPA ratio at 0.15% and provision coverage ratio at 99.39%. As per Business Standard, IDBI Bank's gross and net NPA ratios have improved consistently and stood at 2.3% and 0.2% respectively as on June 30, 2026, same as March 31, 2026, and 3.0% and 0.2% respectively as on March 31, 2025. The improvement is mainly due to lower slippages and write-offs, with slippages at 0.71% (annualised) in Q1 FY27 compared to 0.76% in fiscal 2026 and 0.98% in fiscal 2025.
IDBI Bank's CASA ratio stood at 44.59% as of March 31, 2026, with CASA deposits at ₹1,54,816 crore registering 7% YoY growth. The bank's Tier 1 capital improved to 25.56% and capital adequacy ratio (CRAR) increased to 26.65% as of March 31, 2026, compared to 23.51% and 25.05% respectively in the previous year. The corporate versus retail composition in gross advances portfolio stood at 30:70 as of March 31, 2026. The bank's return on assets (ROA) and return on equity (ROE) stood at 1.75% and 14.35% respectively during Q4 FY26, demonstrating improved operational efficiency. As per Business Standard, the total SMA 1 and 2 accounts for the bank stood at ₹2,515 crore as on June 30, 2026, around 0.95% of total gross advances.
On August 20, 2026, Crisil Ratings reaffirmed its 'Crisil AA+/Crisil AA/Stable/Crisil A1+' ratings on the debt instruments of IDBI Bank. The ratings continue to reflect the bank's steady improvement in asset quality, healthy profitability, stable and healthy deposit base, and sustenance of healthy capitalisation. Further, the ratings continue to factor in expected support from LIC and the Government of India (GoI) towards IDBI Bank till the divestment process is completed, both on an ongoing basis and in the event of distress. As on June 30, 2026, LIC held 49.24% stake in IDBI Bank and GoI owned 45.48%. The current rating factors in the expectation of support from LIC and GoI, both on an ongoing basis and in the event of distress. The long-delayed sale of a majority stake in IDBI Bank, held by the federal government and state insurer LIC, is in its final stages. The transaction, valued at more than $5 billion, would be the largest foreign investment in an Indian bank and is important for the government at a time when the Middle East war has strained finances and weaker foreign inflows have pressured the rupee.
