IDBI Bank Shares Fall Over 3% After Q3 Business Update

Shares of IDBI Bank traded over 3% lower on Monday after the release of the company's Q3 business update.

The shares were down despite IDBI Bank's total business reaching a significant milestone of Rs 5.5 lakh crore. This marked a 12% increase year-over-year. The total deposits saw a steady rise of 9%, bringing them to Rs 3.07 lakh crore, compared to the previous year.

Within the deposit segment, Current Account Savings Account (CASA) deposits grew by 4%, reaching a total of Rs. 1.4 lakh crore. The bank experienced robust growth in lending, with net advances surging by 15% to settle at Rs. 2.3 lakh crore.

The IDBI Bank is also set to undergo stake sale, people in the know told NDTV Profit on Jan.2. The Centre is likely to invite financial bids for the stake sale within a week. Sources had informed that the successful bidder for the stake sale is likely to be announced by March-end. The Centre and the Life Insurance Corporation of India will jointly sell 60.7% stake in the lender.

Notably, the IDBI Bank disinvestment process was first announced in 2022. The plan gained pace this year, with sources telling NDTV Profit in November that Kotak Mahindra Bank is likely to be the frontrunner in acquiring the government's stake.

IDBI Bank's market cap of over Rs 1 lakh crore makes it difficult for investors to buy 60% stake in the lender, the sources had said. But Kotak Mahindra Bank, with the benefit of equity currency, may look at part-cash and part-equity merger deal to buy the stake.

IDBI Share Price Tumbles

The scrip fell as much as 3.29% to Rs 110.96 apiece.

Total traded volume so far in the day stood at 12.48 times its 30-day average. The relative strength index was at 69.03