Why Did IDBI Bank Shares Fell by 16% Today? Check the Reason

Synopsis: The shares of this banking company plunged over 15 percent after reports indicated the government may scrap its strategic disinvestment plan, as financial bids for the stake sale reportedly came below the reserve price.

The shares of this company, which provides comprehensive banking services, including corporate banking, retail banking, and MSME/ Agri-banking, came into focus after the halt of stake sale news.

With a market capitalization of Rs 84,728 crore, IDBI Bank Ltd’s shares on Monday fell by 15.8 percent from its previous day’s close price of Rs 92.20 per share to a day low of Rs 78.05 per share. The shares of this company have given a return of 110 percent over the last five years.

What happened

According to sources, IDBI Bank’s shares declined sharply after reports suggested the government may halt the lender’s strategic disinvestment. Sources indicated that the financial bids received for the proposed stake sale were lower than the reserve price, making it difficult for authorities to move ahead with the privatisation process.

The Centre and Life Insurance Corporation of India had planned to offload a combined 60.7 percent stake in the bank, including 30.48 percent from the government and 30.24 percent from LIC. Currently, the government owns 45.48 percent of the lender while LIC holds a 49.24 percent stake, together maintaining majority control.

Financial bids were reportedly submitted by global institutions such as Fairfax Financial Holdings and Emirates NBD, while Kotak Mahindra Bank had earlier chosen not to participate in the final bidding stage. The proposed transaction, estimated at around Rs 30,000 crore, was expected to be among the largest banking privatisation efforts in India.

As of December 2025, the promoter holding in IDBI Bank remained unchanged at 94.72 percent, with Life Insurance Corporation of India owning 49.24 percent and the government holding 45.49 percent. Meanwhile, FII ownership rose slightly to 0.52 percent from 0.42 percent, while DII stake declined to 0.12 percent from 0.18 percent. Public shareholding also edged lower to 4.65 percent.

About the Company

IDBI Bank is a public sector lender in India that was originally established as a development finance institution in 1964 before transitioning into a commercial bank. The government and Life Insurance Corporation of India are the key shareholders, together holding a majority stake in the bank.

Financial Highlights: The revenue from operations declined by 9 percent to Rs 7,080 crore in Q3 FY26 from Rs 7,819 crore in Q3 FY25, and EBIDT fell by 7 percent to Rs 5,080 crore in Q3 FY26 from Rs 5,437 crore in Q3 FY25. Accompanied by a flat net profit (0 percent growth) at Rs 1,959 crore in Q3 FY26 compared to Rs 1,954 crore in Q3 FY25, resulting in an EPS growth of 1 percent to Rs 1.82 per share in Q3 FY26.

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