IDBI Bank share price tumbles 16% amid latest reports on strategic disinvestment; lender issues clarification

However, in the intraday trade, IDBI Bank issued a clarification regarding the same. It said that the proposed strategic disinvestment of IDBI Bank Limited is a confidential process being undertaken by the Government of India (GOI) and, hence, IDBI Bank is not in a position to either confirm or deny the news reports.

The lender further said it has not received any communication from the GOI with respect to the scrapping of the said process of strategic disinvestment of the bank and, hence, "we are not aware of any information leading to the referenced news report." The Bank shall promptly disclose to the Stock Exchanges any material information, if and when received," IDBI Bank said.

The bank said that the strategic disinvestment process is being handled entirely by DIPAM and that the bank is not involved in the conduct of the transaction. Accordingly, the news article (s) does not have any material impact on the bank.

What news reports earlier said

According to sources, the PTI report said, the bids for IDBI Bank have been opened, and they were below the reserve price set by the IMG and agreed to by the core group on disinvestment, which is chaired by the Cabinet secretary.

Prem Watsa-led Fairfax and Emirates NBD are reported to have put in bids for the strategic sale of IDBI Bank.

Currently, the government and state-owned LIC together hold a 94.71% stake in IDBI Bank. The government owns 45.48%, and LIC holds 49.24% in the lender. Of this, the government and LIC are looking to sell 60.72% in IDBI Bank.

IDBI stake sale: Background and key details

In October 2022, the government and Life Insurance Corporation of India (LIC) invited an expression of interest (EoI) for selling a 60.72% stake in IDBI Bank. The Centre and LIC proposed parting with 30.48% and 30.24% stakes, respectively.

In January 2023, the government said it received multiple preliminary bids. Following that, the bids were sent for security clearance from the Ministry of Home Affairs (MHA) and a 'Fit and Proper' assessment from the RBI.

The shortlisted bidders who received both the clearances later on undertook due diligence of the bank.

In January 2019, the Life Insurance Corporation of India (LIC) completed the acquisition of a 51% controlling stake in IDBI Bank for approximately ₹21,624 crore to rescue the lender from heavy bad loans as part of the disinvestment process.

Consequently, the bank was categorised as a private-sector bank by the Reserve Bank of India (RBI).

In December 2020, the lender was reclassified as an associate company following the reduction of LIC's stake in the bank to 49.24%.

IDBI Bank Q3 FY26 earnings

IDBI Bank reported almost flat profit at ₹1,935 crore for the third quarter ended December 2025 (Q3 FY26).

The LIC-controlled bank reported a net profit of ₹1,908 crore in the year-ago period.

However, the bank's total income declined to ₹8,282 crore during the quarter under review from ₹8,565 crore in the same period last year, IDBI Bank said in a regulatory filing.

The bank's interest income also fell during the third quarter of the current fiscal year to ₹7,074 crore against ₹7,816 crore a year ago.

The gross non-performing asset (NPA) ratio improved to 2.57% as of December 31, 2025, compared to 3.57% a year ago.

However, the net NPA remained static at 0.18% at the end of December 2025.

During the quarter, however, the bank's capital adequacy ratio rose to 24.63% compared to 21.98% at the end of December 2024.

On the other hand, Return on Assets (ROA) moderated to 1.83% in Q3 FY2026 compared to 1.99% for Q3 FY2025.