IDBI Bank Shares Slide 16% on Monday: Here’s What Dragged the PSU Bank Stock Down

The share price of IDBI Bank declined nearly 16 per cent after several media reports suggested that the Government of India may scrap the majority stake sale process due to bids coming in below the reserve price set for the transaction. The stock closed at Rs 76.9 on March 16, 2026, compared to its 52-week high of Rs 118.38 recorded on January 5, 2026, and a 52-week low of Rs 71.90 touched on March 13, 2025.

Reports Suggest Government May Scrap IDBI Bank Majority Stake Sale

According to reports, the government is likely to scrap the bids received for selling its majority stake in IDBI Bank after the offers reportedly fell short of the reserve price set for the transaction. The move could effectively halt the ongoing privatisation process of the lender, which has been underway as part of the government’s broader disinvestment strategy.

IDBI Bank Disinvestment Process

The proposed strategic disinvestment of IDBI Bank has been underway through a competitive bidding process led by the Government of India. The plan involves the sale of 60.72 per cent stake, including 30.48 per cent held by the Government of India and 30.24 per cent held by LIC, along with the transfer of management control.

IDBI Bank clarification

In response to exchange queries regarding the sharp movement in the stock price, IDBI Bank stated that the disinvestment process is confidential and handled by the Government of India, and therefore the bank is not in a position to confirm or deny the media reports about the scrapping of the sale process.

The bank also clarified that the strategic disinvestment is being conducted through a competitive bidding process and does not involve negotiations, meaning IDBI Bank itself does not participate in discussions related to the bids or pricing.

IDBI Bank further stated that it has not received any official communication from the Government of India regarding the cancellation of the disinvestment process, and it will disclose any material updates to the stock exchanges if and when such information is received.

About IDBI Bank Limited

IDBI Bank Limited is a public sector lender headquartered in Mumbai that offers a wide range of banking and financial services to retail, corporate, and institutional customers. The bank provides services including corporate banking, retail banking, MSME lending, treasury operations, and digital banking solutions across India. IDBI Bank was originally established as a development financial institution and later transformed into a commercial bank. The Government of India and Life Insurance Corporation of India (LIC) are the major shareholders, with LIC currently holding a controlling stake in the bank.

As per the latest shareholding data for December 2025, Foreign Institutional Investors (FIIs) increased their stake in IDBI Bank to 0.52 per cent from 0.47 per cent in the previous quarter.

IDBI Bank has a market capitalisation of Rs 82,694 crore. The bank reported a Return on Equity (ROE) of 13.6 per cent, while its book value stands at Rs 64.8 per share. Over the past five years, the bank has delivered profit growth at a CAGR of around 21.0 per cent and has maintained a dividend payout ratio of about 28.8 per cent.

Disclaimer: The article is for informational purposes only and not investment advice