IDBI Bank shares soared more than 18% on Wednesday, reaching an intraday high of ₹91.88 on the NSE before trading at ₹91.16, up 18.16% in afternoon trade. The stock extended gains for a fourth consecutive session, taking its total gains to nearly 27% over the period. According to Moneycontrol, investor sentiment was boosted after government sources indicated that the strategic sale process was progressing despite delays and that authorities remained committed to completing the transaction. A senior government official confirmed that "The IDBI divestment is going to happen this year. It's on track." Despite the strong intraday performance, the stock is trading 29.3% lower from its 52-week high level of ₹118.38 apiece hit on January 5, 2026.
IDBI Bank witnessed significantly higher trading activity on Wednesday, with volumes surging to 13.27 times the daily average. As reported by The Economic Times, a spurt in volume indicates the stock is witnessing substantial interest or activity happening around the equity market. The optimism among investors for the bank comes after a recent report from The Economic Times said that the government is exploring ways to revive the stalled privatisation of the lender.
The latest development follows a Moneycontrol report last week that said the Centre was evaluating various aspects of the transaction, including a possible review of the reserve price amid prevailing market conditions. According to Moneycontrol, "These are difficult times for the transaction. We are still in the process of valuation and no decision has been taken yet. The fresh valuation itself will take about a month to complete, and only after that will we be in a position to take a call." The government and Life Insurance Corporation of India (LIC) are jointly seeking to sell a 60.72% stake in the lender along with management control. Under the proposed transaction, the Centre will divest 30.48%, while LIC will sell 30.24%. Together, the two shareholders own nearly 95% of the Mumbai-based bank. The divestment process has been under way for several years and remains one of the government's most closely watched strategic sale programmes.
IDBI Bank had recorded a 5% fall in its net profit after tax (PAT) for the March quarter due to a rise in the institutional lender's cost of funds. As per the standalone financial statements, the lender's net profits for the fourth quarter of FY2025-26 dropped 5% to ₹1,943.2 crore, compared year-on-year with ₹2,051.2 crore in the same period a year ago. However, the lender's net interest income (NII) for the quarter advanced 17% year-on-year to ₹3,851.5 crore in the January to March quarter, compared with ₹6,978 crore in the same quarter of the previous financial year. The bank's gross non-performing assets (NPAs) dropped YoY to ₹6,028 crore in the March quarter, compared with ₹6,695 crore in the same period year ago, with the gross NPA percentage figure dropping by 66 basis points to 2.32%. On the asset quality front, the bank saw further improvement with gross non-performing assets easing to 2.32% from 2.57% in the previous quarter, while net NPAs narrowed to 0.15% from 0.18% sequentially.
IDBI Bank has a total market capitalisation of ₹98,126.42 crore as of June 17, 2026, according to data on the NSE. The bank's net interest margin (NIM) improved to 4.15% in the March quarter, compared to 4% a year ago, while the privatisation process gained formal momentum when the Cabinet Committee on Economic Affairs gave its in-principle approval in May 2021 for strategic disinvestment along with the transfer of management control. As part of the sale process, the successful bidder will be required to undergo a final assessment by the Reserve Bank of India (RBI) to ensure compliance with the regulator's 'fit and proper' criteria. The transaction will also require approvals from relevant statutory and regulatory authorities, including the Competition Commission of India (CCI), and the winning bidder will have to make an open offer to minority shareholders in accordance with applicable takeover regulations.
