IDBI Bank Shares Crash 13% to ₹79 After Reports Govt May Scrap Stake Sale Over Low Bids
IDBI Bank shares plunged over 13% to around ₹79 after reports said the Indian government may scrap the proposed majority stake sale due to lower-than-expected bids. The development has raised uncertainty around the bank’s long-planned privatisation process.
Shares of IDBI Bank fell sharply on 16 March 2026, dropping more than 13-14% in early trade to around INR 79 per share, after reports suggested that the Indian government may cancel the ongoing process to sell its majority stake in the lender.
The fall marked the biggest single-day decline for the stock since June 2024, as investors reacted to uncertainty around the bank’s long-planned privatisation.
IDBI Bank Share Price Plunges on Monday Morning
IDBI Bank shares dropped sharply in early trade on 16 March 2026. The stock hit a low of INR 77.66, down over 13% from the previous close.
As of midday, trading showed high volume at around 32.50 lakh shares worth INR 32.74 crore on NSE. The market cap stood at about INR 1,08,115 crore, with the price hovering near INR 100 after some recovery, but still reflecting heavy selling pressure.
This marks one of the bank's worst single-day falls in recent months, outpacing broader market dips.
Government Stake Sale Process Hits Roadblock
The government and Life Insurance Corporation of India (LIC) hold over 94% stake in IDBI Bank. They planned to sell a combined 60.7% equity, 30.5% from the government and 30.2% from LIC, worth around INR 66,000 crore at current prices.
Reports confirm bids from Canada's Fairfax Financial Holdings and Dubai's Emirates NBD came in below the reserve price set by the government. Financial bids arrived on 6 February 2026, but sources say they did not meet expectations.
The process started in 2021 with Cabinet approval, gained pace in October 2022 via expressions of interest, and aimed for completion by March 2026. Now, it faces a halt.
Timeline of IDBI Bank Privatisation Efforts
- 2019: Life Insurance Corporation of India (LIC) acquires a controlling stake in IDBI Bank as part of a rescue plan.
- February 2021: The Indian government announces plans to privatise IDBI Bank in the Union Budget 2021-22.
- May 2021: The Cabinet Committee on Economic Affairs approves the strategic disinvestment and transfer of management control.
- October 2022: The government and LIC invite investors through an Expression of Interest (EoI) to buy a 60.7% stake in the bank.
- January 2023: Preliminary bids are received and cleared by security agencies and the Reserve Bank of India.
- 2023–2025: Shortlisted bidders carry out due diligence and review the bank’s financial data.
- February 2026: Financial bids are submitted by interested investors.
- March 2026: Reports suggest the government may scrap the sale process after bids reportedly fall below the reserve valuation, triggering a sharp fall in IDBI Bank shares.
What Happens Next for IDBI Bank Stake Sale
No official word yet from the government or LIC. Sources suggest a fresh bidding round later when market conditions improve, and better offers come in.
IDBI Bank has turned profitable lately, cutting bad loans with government aid. Its stock gained 9.2% in the past year before this drop.
Investors watch for updates, as this could delay privatisation beyond FY26. The bank remains strong fundamentally, with recent quarterly profits like INR 362 crore for September 2025.
This news shakes confidence in public sector bank sales amid global economic caution.