The IDBI Bank share price dropped more than 4.5% to an intra-day low of Rs 69.58 on the National Stock Exchange. The fall in stock price came after new reports said that the government is reconsidering the stake sale.
The government might consider divesting a portion of its stake in IDBI Bank via the Offer-for-Sale (OFS) method to boost public shareholding, following an unsuccessful attempt to divest its holdings in the Life Insurance Corporation of India-managed bank, as reported by PTI, citing sources.
As of now, IDBI Bank’s public float stands at 5.29%, limiting the scope of fair valuation.
With a controlling stake at 49.24%, LIC holds the remaining shares, while the Government of India (GoI) holding is at 45.48%.
IDBI Bank majority stake: What happened so far?
Earlier in March, the proposed sale of a 60.72% majority stake, held jointly by the government and the LIC, was scrapped after financial bids from two potential buyers reportedly fell short of the reserve price.
The sale of a 60.72% majority ownership was cancelled after financial offers from two prospective buyers reportedly did not meet the reserve price. The government of India and the LIC jointly held that stake.
Low free float hinders the ability to achieve a fair market valuation, and increasing this by 10% or 15% could enhance the reliability of price discovery, said sources.
It can serve as a dependable benchmark for valuation and additionally enhance the transparency of the price discovery process, sources indicated, noting that a strategic sale could still be considered following one or two phases of OFS.
Earlier, both the government and LIC were to offload 30.48% and 30.24% stake, respectively, as per the failed plan.
First stake sale attempt in 2016
This is the second time the government has sought to privatise IDBI Bank, following the initial announcement made in 2016. The concept was first introduced in the Union Budget speech by the then-Finance Minister Arun Jaitley in February 2016.
IDBI Bank share price performance
The share price of IDBI Bank has fallen by over 7% in the last five trading sessions. The banking stock has erased 35.5% of investors’ wealth in the past one month and 21.5% in the last six months. IDBI Bank’s share price has declined 9.6% over the previous 12 months.
IDBI Bank Q3FY26
IDBI Bank posted a rise of 1.4% year-over-year standalone net profit for its December quarter at Rs 1,935 crore, as against Rs 1,908 crore reported in the same quarter a year back. However, the profit after tax declined 47% quarter–over-quarter compared to Rs 3,627 crore in Q2 of FY26.
The lender’s net interest income (NII) fell 24% YoY to Rs 3,209.5 crore in Q3FY26, compared to Rs 4,228.2 crore in the same quarter of the previous year.
The bank reported a drop in net non-performing assets (NPA) to Rs 425.3 crore in the quarter ended December 2025, compared with Rs 474.2 crore in the previous quarter.