IDBI Bank shares soar 19% amid strong volume action, outperform NIFTY Smallcap 100 index

IDBI Bank shares rallied 19% to touch an intraday high of ₹91.49 apiece on Wednesday, June 17, becoming one of the lead contributors to the NIFTY Smallcap 100 index.

The stock is, however, trading 29.3% lower from its 52-week high level of ₹118.38 apiece hit on January 5, 2026. At 12:35 PM, IDBI Bank shares were trading at ₹90.16 apiece on the National Stock Exchange, soaring 16.86%.

From the beginning of the year, IDBI Bank shares have fallen 13%. Over a month’s time, the stock has gained over 30%, while it has lost nearly 8% in the last six months.

IDBI Bank witnessed significantly higher trading activity on Wednesday, with volumes surging to 13.27 times the daily average. A volume in the stock volume is the number of shares traded in a specific period. A spurt in volume means the stock is witnessing a lot of interest or activity happening around the equity market.

IDBI Bank Q4 earnings

IDBI Bank had recorded a 5% fall in its net profit after tax (PAT) for the March quarter due to a rise in the institutional lender’s cost of funds (interest expended). This rise in cost has weighed down on the company’s operating income for the period.

The lender’s net profits for the fourth quarter of the financial year ended 2025-26 dropped 5% to ₹1,943 crore, compared year-on-year with ₹2,051 crore in the same period a year ago, as per the standalone financial statements.

The lender’s net interest income (NII) for the quarter advanced 11.7% to ₹7,798 crore in the January to March quarter, compared with ₹6,978 crore in the same quarter of the previous financial year.

IDBI Bank’s financial statements showed that the lender’s gross non-performing assets (NPAs) dropped YoY to ₹6,028 crore in the March quarter, compared with ₹6,695 crore in the same period a year ago.

The gross NPA percentage figure dropped by 66 basis points to 2.32% in the fourth quarter, compared with 2.98% in the same period a year earlier. On the net interest margin front, IDBI Bank’s NIM improved to 4.15% in the March quarter, compared to 4% a year ago.

IDBI Bank privatisation: A look at history

This is the second time that the government has wanted to privatise IDBI Bank since the first announcement made in 2016. The idea was first officially hinted at in the Union Budget speech by then Finance Minister Arun Jaitley in February 2016. The first attempt to privatise the then state-owned IDBI Bank failed due to valuation concerns.

However, the government later sold the controlling stake to LIC, which had been eyeing acquiring a stake in a bank to expand its bancassurance business model.

Subsequently, in January 2019, LIC acquired 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. As a result, the bank was categorised as a private-sector bank by the Reserve Bank of India.

In December 2020, the lender was reclassified as an associate company following the reduction of LIC's stake in the bank to 49.24%. The process for privatisation gained formal momentum when the Cabinet Committee on Economic Affairs gave its in-principle approval in May 2021 for strategic disinvestment along with the transfer of management control in IDBI Bank.

In October 2022, KPMG India was appointed as transaction advisor, and the intent to sell a 60.72% stake in the bank was announced.

The Department of Investment and Public Asset Management (DIPAM) invited Expressions of Interest (EoI) in October 2022, and market regulator SEBI approved the reclassification of GOI as a public shareholder upon completion of the sale in January 2023.

Later in August 2025, the regulator gave its nod for the reclassification of LIC as a public shareholder upon completion of the sale, and after a long due diligence period, financial bids from Emirates NBD Bank and Prem Vatsa-promoted Fairfax India were finally received in February 2026.

IDBI Bank has a total market capitalisation of ₹98,126.42 crore as of June 17, 2026, according to the data on the NSE.