IDBI Bank hits 52-week high; stock rallies 9% on heavy volumes

The average trading volumes at the IDBI Bank counter jumped nearly two-fold with a combined 58.94 million equity shares changing hands on the NSE and BSE till 12:26 PM.

Share price of IDBI Bank today

 

Shares of IDBI Bank extended its rally, hitting a 52-week high of ₹106.99, surging 9 per cent on the BSE in Friday’s intra-day trade amid heavy volumes. The stock price of the private sector bank surpassed its previous high of ₹106.34 touched on June 30, 2025.

 

At 12:26 PM; IDBI Bank share price was quoting 7 per cent higher at ₹104.70, as compared to 0.32 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped nearly two-fold with a combined 58.94 million equity shares changing hands on the NSE and BSE.

Centre likely to invite financial bids for IDBI Bank divestment

 

According to media reports, the financial bidding for IDBI Bank is expected to conclude by October 2025. 

 

An inter-ministerial group (IMG) met on July 7 to discuss remaining issues tied to the strategic sale, including the finalisation of the share purchase agreement (SPA) that will govern the transaction, the Business Standard reported. CLICK HERE FOR FULL REPORT

 

The government will soon be inviting financial bids for IDBI Bank stake sale, with an IMG comprising of secretaries of the Department of Investment and Public Asset Management (DIPAM) and the Department of Financial Services (DFS) expected to meet on October 31 to finalise and approve the bidding process, Moneycontrol reported quoting government officials.

 

The meeting is expected to clear the final draft of the SPA – a key transaction document detailing buyer obligations, transfer of management control and post-sale responsibilities – and set the timeline for inviting financial bids from shortlisted investors, the report suggested.

LIC, Government of India held 94.71 per cent stake in IDBI Bank

 

As on September 30, 2025, Life Insurance Corporation of India (LIC) (49.24 per cent) and Government of India (GoI) (45.48 per cent) together held 94.71 per cent shareholding in the IDBI Bank, and have stated their intent to divest their shareholding in the bank through a strategic stake sale with an intent to handover management control in the bank.

 

The GoI, acting through the DIPAM, had invited expressions of interest from potential investors in October 2022. Even as the process to dilute their respective stakes in IDBI Bank has progressed, the conclusion and eventual finalisation of new stakeholders is still awaited. The extent of the respective shareholding to be divested by GoI and LIC will be decided at the time of structuring the transaction, in consultation with the Reserve Bank of India (RBI) and other relevant regulators.

IDBI Bank Outlook

 

IDBI Bank’s asset quality metrics further improved in September 2025 quarter (Q2FY26) with the gross non performing assets (NPAs) declining to 2.65 per cent from 3.68 per cent in Q2FY25 and the net NPAs reducing to 0.21 per cent from 0.2 per cent, aligning well with its peers’.

 

Improvement in the asset quality parameters for IDBI Bank has been backed by recoveries of NPAs, decline in incremental slippages in the last three years and high provision coverage ratio (~95 per cent excluding technical write-offs as on March 31, 2025). IDBI Bank is expected to sustain growth in business while maintaining adequate capitalisation. However, sustenance of improvement in financial metrics is monitorable; CareEdge Ratings (Care Ratings) said in September 2025 rating rationale. CareEdge Ratings expects the bank to receive required support from GoI and LIC to enable smooth divestment of the shareholding.

 

Apart from the steady growth in advances and the consequent improvement in its core income and profit, IDBI continues to benefit from the recoveries from significantly provisioned stressed assets. The operating profitability is supported by strong recoveries from written-off accounts while credit and other provisions also remained low, supporting the overall profitability.