IDBI Bank shares surge over 10%; check what's fuelling the stock price today

IDBI Bank share price surged more than 10% during the trading session on Monday, August 24, as investors focused on the high-volume momentum while pinning their hopes on the potential long-awaited Life Insurance Corp. (LIC) stake sale in the upcoming period.

NSE data showed that IDBI Bank shares rallied 10.53% to touch their intraday high of ₹90.90 apiece on Monday’s market, in comparison to ₹82.24 apiece at the previous stock market close.

IDBI Bank’s trading volumes surpassed 72 million equity shares on both NSE and BSE during the intraday trading session.

After touching the intraday high, the institutional lender’s stock retracted some of its gains, trading 8.9% higher at around ₹89.61 apiece during the afternoon session on August 24.

What do latest reports suggest?

Investors on Monday were also reacting to the latest media report, which suggests that the central government is closing in on allegedly accepting a revised offer from Canada-based Fairfax Financial for the stake up for sale in IDBI Bank.

According to an NDTV Profit report, people aware of the development told the news portal that the IDBI Bank-Fairfax deal is estimated to be completed soon, with a few final pending clearances in focus.

Other media reports from last week suggest that Fairfax is likely to be provided with up to two years to consolidate its India banking holdings to carry out the IDBI Bank acquisition, while LIC sells its long-held stake in the lender.

As per a Reuters report, the stake transaction is estimated to be valued at more than $5 billion, potentially becoming the largest foreign investment in an Indian Bank.

However, the current Reserve Bank of India (RBI) rules dictate that one entity cannot own and operate two separate Indian banks, and with Fairfax owning 40% of CSB Bank, if the deal goes through, the entity will likely have to sell its stake or merge the two lenders.

The government’s efforts to sell IDBI Bank’s stake come for the second time after the first announcement back in 2016. The first attempt failed due to valuation concerns, and later in 2020, LIC’s stake in the company was reduced to its current level.

What did IDBI say?

In a statement released on July 14, 2026, IDBI Bank said that the lender has not received any communication from the Government of India regarding the finalisation of the strategic divestment process and has no control over the negotiations.

“IDBI Bank has had no role to play in the negotiations,” the lender informed the stock exchanges.

As of the June quarter of FY26, Life Insurance Corporation of India (LIC) owns a 49.24% stake in IDBI Bank, while the President of India holds a 45.48% stake, and the remaining 5.29% is owned by the public.

How have IDBI Bank shares performed?

IDBI Bank shares have delivered more than 140% returns to investors in the last five years, and over 45% in the last three years, according to NSE data. However, the company’s shares have lost 6% in the past one-year period.

So far in the calendar year 2026, the institutional lender’s stock has dropped 14%, but has risen more than 5% in the past one-month period, according to the exchange data. The company’s stock has lost 8.6% in the last five market sessions.

Shares of IDBI Bank surged to their 52-week high of ₹118.38 apiece on January 5, 2026, while the 52-week low was at ₹61.01 apiece on March 30, 2026.

The company’s market capitalisation (m-cap) was at ₹94,341 crore as of the trading session on Monday, August 24, 2026.