The share price of Industrial Development Bank of India (IDBI) tumbled following reports that the government will scrap the bids it received for a majority stake sale of the lender. On Monday, IDBI Bank’s price plummeted to ₹77.00, dropping by 16.47% from the previous closing price of ₹92.18. The stock shed 22.50% over the past five trading days. Strategic Stake Sale Likely Scrapped The stock saw significant losses following reports published on Friday that the strategic sale of IDBI Bank’s shares was likely scrapped. The Indian government, which owns 45.48% stake in the bank, and the state-owned Life Insurance Corporation of India (LIC), which holds 49.24% of the bank’s shares, together floated an Expression of Interest (EoI) in October 2022 to sell 60.72% of IDBI Bank. The sale represents one of the government’s privatization efforts to reduce state ownership in the banking sector. Financial Bids Below Reserve Prices Citing unnamed sources, the Press Trust of India reported that the divestment process was likely shelved after the financial bids from potential buyers came in on February 6. They said that the bids were below the reserve price set by the inter-ministerial group on disinvestment headed by the secretaries in the finance ministry. Based on information from a government source, Reuters reported that India may still initiate a new process once the market appetite improves and buyers show strong interest. Q3 Net Profit Up by Just 1.4% The setback comes following IDBI Bank’s almost flat profit for the third quarter ended December 31, 2025. In January, the lender reported that it generated a net profit of ₹1,935.5 crore for the quarter. The number represents an increase of just 1.4% from the ₹1,908.3 crore posted in the same period a year earlier.
