IDBI Bank shares soar to highest in 11 years; stock jumps 11% on volumes

IDBI Bank stock rose as much as 11.1 per cent during the day to ₹115.1 per share, the highest level since June 2014

Shares of IDBI Bank Ltd. surged to the highest level in over 11 years on Friday, soaring 11 per cent, amid a surge in the stock's trading volume. 

 

The lender's stock rose as much as 11.1 per cent during the day to ₹115.1 per share, the highest level since June 2014. The stock pared gains to trade 9.8 per cent higher at ₹114 apiece, compared to a 0.46  per cent advance in Nifty 50 as of 2:47 PM. 

 

Shares of the company rose for the third straight session and currently trade at 15 times the average 30-day trading volume. Trading volume stood at 14.9 million shares, according to Bloomberg, which is nearly four times the 20-day average of 4.06 million shares. 

 

 

The counter has risen 49 per cent in the last 12 months, compared to an 11 per cent advance in the benchmark Nifty 50. IDBI has a total market capitalisation of ₹1.22 trillion.  

Government eyes stake sale

In December last year, reports showed that the Indian Government may seek bids for its $7.1 billion majority stake in IDBI Bank Ltd. The government is aiming to sell 60.72 per cent in the lender, which amounts to about $7.1 billion at IDBI Bank's current market price, Bloomberg reported. 

 

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.  

IDBI Q2 recap

Private sector lender reported a 39 per cent jump year on year (Y-o-Y) in its net profit for the second quarter of the current financial year (Q2FY25) to ₹1,836 crore on improvement in net interest margins and an uptick in non-interest income. Sequentially, the Mumbai-based lender’s net profit rose by 7 per cent from ₹1,719 crore in Q1FY25. 

 

IDBI Bank’s net interest income (NII) expanded 26 per cent Y-o-Y to Rs 3,875 crore in Q2FY25 compared to Rs 3,066 crore in the same quarter a year ago. Net interest margin (NIM) improved by 54 basis points to 4.87 per cent from 4.33 per cent in Q2FY24. Sequentially, NIM was up from 4.18 per cent in Q1FY25.