Shares of the Industrial Development Bank of India (IDBI) have seen a significant decline recently, amid rumors that the government will cancel the bids received for the sale of a majority stake in the bank.
On Monday, IDBI Bank's stock price fell to ₹77.00, down 16.47% from the previous trading day's close of ₹92.18. Over the past five trading days, the stock has accumulated a decline of 22.50%.
Strategic Equity Sale Faces Stalemate
Reports released last Friday indicated that IDBI Bank's strategic equity sale plan may have been shelved, directly leading to the sharp drop in stock price.
The Indian government currently holds a 45.48% stake in the bank, while the Life Insurance Corporation (LIC) holds 49.24%. The two parties jointly issued an Expression of Interest (EoI) in October 2022, planning to sell 60.72% of IDBI Bank's equity. This sale is seen as part of the government's efforts to promote the privatization of the banking sector and reduce state ownership.
Financial Bids Below Reserve Price
(The original text did not provide specific information here, but context suggests this may be one of the reasons for the stalled sale plan, such as not receiving financial bids that met expectations.)
Third Quarter Net Profit Growth Only 1.4%
As the equity sale plan falters, IDBI Bank reported nearly stagnant profit growth for the third quarter ending December 31, 2025. Data released by the bank in January showed a quarterly net profit of ₹1,935.5 million, a mere 1.4% increase compared to ₹1,908.3 million in the same period last year.