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Shares of IDBI Bank surged 4% to Rs 105 apiece on June 30, following reports that the government is set to invite financial bids
IDBI Bank Stake Sale
IDBI Bank Share Price: Shares of IDBI Bank surged 4% to Rs 105 apiece on June 30, following reports that the government is set to invite financial bids for the lender soon.
According to CNBC-TV18, the Centre is close to finalising the share purchase agreement with prospective buyers and may shortly seek clearance from the ministerial panel overseeing the transaction.
The long-delayed IDBI Bank stake sale is seen as a crucial pillar in the government’s strategic disinvestment roadmap. Despite multiple deferrals over the past three years, the process now appears to be gaining traction. So far in 2025, IDBI Bank shares have rallied 35%, significantly outperforming the Nifty 50’s 7% year-to-date gain.
Currently, the Union government and LIC jointly own 95% of IDBI Bank, of which 60.72% is set to be divested. This move also reflects a shift in the Centre’s approach to monetising public assets. Unlike earlier years, the Union Budget 2025-26 did not specify a separate disinvestment target, instead grouping all proceeds under a broader category—“miscellaneous capital receipts”—estimated at Rs 47,000 crore.
In FY25, the government collected around Rs 30,000 crore via disinvestment. However, officials are hopeful that marquee deals like IDBI Bank’s sale will help plug fiscal gaps in FY26.
On the earnings front, IDBI Bank reported a 26% year-on-year rise in net profit for Q4FY25, clocking Rs 2,051 crore compared to Rs 1,628 crore in the same quarter last year. However, Net Interest Income (NII) declined 11% year-on-year to Rs 3,290 crore from Rs 3,688 crore.
Asset quality improved further, with Gross NPA falling to 2.98% from 3.57% in Q3FY25, and Net NPA easing to 0.15% from 0.18% in the previous quarter.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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