IDBI Bank spurts 10% on heavy volumes in subdued market

As many as a combined 41.5 million shares representing 7.3 per cent of total public shareholding of the IDBI Bank have changed hands on the NSE and BSE.

IDBI Bank share price today

 

Shares of IDBI Bank moved higher by 10 per cent to ₹112.28 on the BSE in Wednesday’s intra-day trade amid heavy volumes in an otherwise subdued market. The stock price of the private sector bank was quoting close to its 52-week high of ₹118.45 touched on January 5, 2026. 

At 12:40 PM; IDBI Bank shares were trading 8 per cent higher at ₹110.06, as compared to 0.04 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped over four-fold. As many as a combined 41.5 million shares representing 7.3 per cent of total public shareholding of the IDBI Bank changed hands on the NSE and BSE.  READ STOCK MARKET UPDATES TODAY LIVE

 

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

 

As on December 31, 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 Department of Investment and Public Asset Management (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. 

The strategic disinvestment of the Bank is in process and entirely being handled by DIPAM, IDBI Bank said.

Union Budget 2026-27

The Union Budget 2026-27 has set a disinvestment target of ₹80,000 crore under miscellaneous capital receipts, which includes sale of shares in public sector undertakings (PSUs) and asset monetisations.  

The Centre has set a disinvestment and asset monetisation target of ₹80,000 crore for FY27, a sharp jump of nearly 135 per cent over the revised FY26 estimate of ₹33,837 crore, banking on large transactions such as IDBI Bank and LIC stake sales.  

Finance minister Nirmala Sitharaman said the government will pursue all cabinet-approved disinvestment proposals, signalling continuity in strategy. Additional stake dilution in select PSU banks is also planned to meet minimum public shareholding norms, ICICI Securities said a note.  ALSO READ | Tech stocks sink as Anthropic AI triggers global selloff; Nifty IT skids 6%

ICRA view on IDBI Bank

IDBI Bank continues to benefit from recoveries from its legacy stress assets, leading to an improvement in its profitability. Besides, the lower credit cost has supported healthy internal capital generation, contributing to the strengthening of IDBI’s capitalisation profile and improving its loss-absorption capability. 

The bank has benefitted from the steady growth in advances and the consequent improvement in its core income and profit, further supported by benign credit costs. In addition, 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, aiding the overall profitability, ICRA said in the September 2025 rating rationale.