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IDBI Bank share price crashes 15%, nears 52-week low as govt likely shelves stake sale plan
Summary
Shares of IDBI Bank Limited fell 15% in intraday trade on Monday, March 16, amid reports that the Indian government's efforts to sell a majority stake in the lender are likely to be scrapped.
IDBI Bank share price declined as much as 15.34% to ₹78.05 on the BSE, nearing its one-year low of ₹72.04. Trading volumes were higher than usual.
According to multiple media reports, the government has scrapped plans to divest PSU stock after offers received fell below the minimum price expectation, dampening investor sentiment. The Indian government and state-owned Life Insurance Corporation of India (LIC) had initiated the process to sell 60.7% of the lender in 2022.
“The existing sale process would be scrapped as the bids received were below the so-called reserve price, or the minimum sale price, set for the sale,” people aware of the matter told Reuters. Mint could not independently verify this report.
Earlier reports had indicated that the divestment of IDBI Bank had attracted bids from Canadian investment group Fairfax Financial and Emirates NBD.
As of the December quarter of ongoing fiscal year (Q3 FY26), the government and LIC held 45.48% and 49.24%, respectively in IDBI Bank, resulting in a cumulative 94.71% promoter stake.
The PSU lender returned to profitability in recent years. For Q3 FY26, the profit improved to ₹1935 crore as against ₹1908 crore in the same period last year. Meanwhile, the net interest income declined 24% year-on-year (YoY) to ₹3209.5 crore in the December quarter as against ₹4,228.2 crore a year ago.
Asset quality improves as gross NPA ratio came in at 2.57% for the third quarter of FY26 as against 3.57% a year ago, down 100 bps. The net NPA ratio remained at 0.18%.
Saloni Goel has over nine years of experience as a business journalist, with a strong track record of covering the financial markets. Over the course ...Read More
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IDBI Bank share price declined as much as 15.34% to ₹78.05 on the BSE, nearing its one-year low of ₹72.04. Trading volumes were higher than usual.
According to multiple media reports, the government has scrapped plans to divest PSU stock after offers received fell below the minimum price expectation, dampening investor sentiment. The Indian government and state-owned Life Insurance Corporation of India (LIC) had initiated the process to sell 60.7% of the lender in 2022.
“The existing sale process would be scrapped as the bids received were below the so-called reserve price, or the minimum sale price, set for the sale,” people aware of the matter told Reuters. Mint could not independently verify this report.
Earlier reports had indicated that the divestment of IDBI Bank had attracted bids from Canadian investment group Fairfax Financial and Emirates NBD.
As of the December quarter of ongoing fiscal year (Q3 FY26), the government and LIC held 45.48% and 49.24%, respectively in IDBI Bank, resulting in a cumulative 94.71% promoter stake.
The PSU lender returned to profitability in recent years. For Q3 FY26, the profit improved to ₹1935 crore as against ₹1908 crore in the same period last year. Meanwhile, the net interest income declined 24% year-on-year (YoY) to ₹3209.5 crore in the December quarter as against ₹4,228.2 crore a year ago.
Asset quality improves as gross NPA ratio came in at 2.57% for the third quarter of FY26 as against 3.57% a year ago, down 100 bps. The net NPA ratio remained at 0.18%.
Saloni Goel has over nine years of experience as a business journalist, with a strong track record of covering the financial markets. Over the course ...Read More
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Download the Mint app and read premium stories
AI Description
The article discusses the significant drop in IDBI Bank's share price due to the Indian government's decision to likely scrap the stake sale plan. This decision has led to a 15% decline in the bank's share price, nearing its 52-week low.