Shares of IDBI Bank jumped on April 24 after Finance Minister Nirmala Sitharaman reaffirmed the government's intent to proceed with the divestment of its stake in the lender, offering renewed clarity on a privatisation process that has faced prolonged delays. The stock rose as much as 8% during the session to touch Rs 79.90, its highest level in a month, as investor sentiment improved following the comments.
IDBI Bank shares are trading 3.07% at Rs 75.99 apiece, as of 1:30 pm. Trading activity also surged, with nearly 36 million shares changing hands—around 14 times the volume recorded during the same period in the previous session.
Speaking on the sidelines of a State Bank of India event in Mumbai, Sitharaman said the reasons for the delay in the IDBI Bank stake sale had already been disclosed earlier, adding that the divestment would continue. Her remarks marked the clearest official signal yet that the government remains committed to the long-planned transaction.
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The proposed sale involves a combined 60.72% stake in IDBI Bank, comprising a 30.48% holding by the government and a 30.24% stake owned by Life Insurance Corporation of India (LIC). Based on earlier market estimates, the deal could be valued at around Rs 72,000 crore, making it one of the largest privatisations in the domestic banking sector.
Uncertainty around the process had intensified last month following reports that bids received from prospective buyers fell short of the government's valuation expectations. NDTV Profit had earlier reported that offers were estimated in the Rs 40,000–45,000 crore range. Officials were said to be deliberating whether to recalibrate valuation benchmarks or account for market volatility while deciding the way forward.
Sitharaman also clarified that there are no immediate plans for consolidation among public sector banks, saying the matter would instead be examined by a high-level banking committee. The IDBI Bank privatisation has been in progress since January 2023, when the Department of Investment and Public Asset Management invited expressions of interest from bidders.
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