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The sharp decline follows a 16.49% drop in the previous session after media reports suggested that the government's plan to sell its stake in the lender may have been scrapped due to lower-than-expected financial bids. According to reports, bids from potential investors were below the reserve price set by the inter-ministerial group on disinvestment under the finance ministry, which was approved by the core group on disinvestment chaired by the Cabinet Secretary. Bids were reportedly submitted on 6 February 2026 after shortlisted bidders completed regulatory clearances and due diligence, with Fairfax, led by Prem Watsa, and Emirates NBD among the bidders. The government and Life Insurance Corporation of India (LIC) are looking to divest a combined 60.72% stake in the bank, comprising 30.48% held by the Centre and 30.24% by LIC. Currently, the Centre owns 45.48% in IDBI Bank, while LIC holds 49.24%. The disinvestment process began in October 2022, when expressions of interest were invited from potential investors. IDBI Bank was earlier rescued by LIC in January 2019, when the insurer acquired a 51% stake for around Rs 21,624 crore, following which the Reserve Bank of India reclassified it as a private sector bank. Meanwhile, the bank, in a clarification to stock exchanges on 16 March 2026, said it cannot confirm or deny the media reports, stating that the disinvestment process is confidential and handled by the Government of India through a competitive bidding route. It added that it has not received any communication from the government regarding cancellation of the stake sale. On a consolidated basis, IDBI Bank's net profit rose 0.31% to Rs 1954.09 crore while total income declined 3.21% to Rs 8,351.61 crore in Q3 December 2025 over Q3 December 2024. Powered by Capital Market - Live News
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