IDBI shares rise over 9% amid reports of government to resume divestment process

The stock had touched its 52-week high of ₹98.7 per share witnessed earlier this year on February 6, 2024.

The lender was among the top gainers among the NIFTY Midcap 100 stocks, following Hindustan Petroleum Corporation and Prestige Estates Projects.

The rally in the IDBI Bank shares was seen amid the rally in broader markets after exit poll reports suggesting a landslide majority for the Bharatiya Janata Party-led National Democratic Alliance (NDA).

A few reports suggested that the government is expected to carry forward the divestment process in the IDBI Bank, which has been put on hold in the last few months.

Currently, the Government of India owns a 49.24% stake in IDBI Bank, while the country’s largest insurance company Life Insurance Corporation of India (LIC) owns a 45.48% stake in the bank.

Shares of IDBI Bank have fared well on a short term as well as long term basis, as its stock can be seen giving positive and healthy returns to shareholders over multiple durations of one week to three years.

The banking stock has gained more than 3% in a week’s time, while rising 4% in a period of three months. On a year-to-date (YTD) basis, the stock has made a healthy double-digit uptick, climbing almost 40% so far in the year 2024.

IDBI Bank’s shares have given impressive returns of nearly 70% to its shareholders over the last one year, while marking stellar growth of 140% in the past three years’ time.

On Saturday, June 1, 2024, the Board of Directors of IDBI Bank approved the appointment of Sumit Phakka as the Deputy Managing Director on the bank’s Board for a period of 3 years.

Phakka is a senior banking professional with almost 30 years of experience in State Bank of India (SBI) across various capacities and geographies. He currently serves as the Chief General Manager in SBI, New Delhi, and will begin his role in IDBI Bank on receiving an approval from the Reserve Bank of India (RBI).

Shares of IDBI Bank closed 7.01% higher at ₹91.60 apiece on the NSE.