IDBI Bank Shares Jump 5% on Privatisation Buzz, Govt May Invite Bids Soon

IDBI Bank shares surged as much as 5% to their intraday high on the National Stock Exchange on June 30 after reports claimed that the government is looking to invite bids for the bank soon. The stock price is hovering close to its 52-week high level. The government is close to concluding share purchase agreement with potential bidders, as the finance minister has also indicated that the deal is expected to be completed in FY26.

The government and LIC Bank have a big stake in IDBI Bank. They together hold nearly 95% stake in the lender, as per the information available on the BSE website. According to previous reports, the deal is expected to be valued at around ₹45,000-₹55,000 crore. About 61% stake in IDBI Bank will be sold under the divestment plan. As soon as the process of financial bids begins, IDBI Bank’s share price and volumes might see some movement.

At its intraday high of ₹106.32 on the NSE today, the stock was just 1.5% lower than the 52-week high level mark, while 61% above its 52-week low level. The stock price has gained nearly 27% in the last one year, and has gained 13% in the last one month. The stock has gained 39% in 2025 so far. If the deal goes through, it will be the first time a public sector lender will go completely private.

The bank’s financial and operational health has improved as it is now back in profit, and its non-performing assets and balance sheet have also improved, making it attractive for buyers. The lender’s net profit for the fourth quarter of FY25 jumped 33% year-on-year to ₹7,515 crore. Its operating profit for FY25 rose 16% to ₹11,079 crore, while net interest margin was 4.56%.

The public sector lender’s return on assets improved to nearly 2%, and its return on equity climbed to over 20%.