Shares of IDBI Bank Limited fell 15% in intraday trade on Monday, March 16, amid reports that the Indian government’s efforts to sell a majority stake in the lender are likely to be scrapped.
IDBI Bank share price declined as much as 15.34% to ₹78.05 on the BSE, nearing its one-year low of ₹72.04. Trading volumes were higher than usual.
Why is IDBI Bank share price falling?
According to multiple media reports, the government has scrapped plans to divest PSU stock after offers received fell below the minimum price expectation, dampening investor sentiment. The Indian government and state-owned Life Insurance Corporation of India (LIC) had initiated the process to sell 60.7% of the lender in 2022.
The existing sale process would be scrapped as the bids received were below the so-called reserve price, or the minimum sale price, set for the sale, according to a Bloomberg report. Mint could not independently verify this.
Earlier reports had indicated that the divestment of IDBI Bank had attracted bids from Canadian investment group Fairfax Financial and Emirates NBD.
As of the December quarter of the ongoing fiscal year (Q3 FY26), the government and LIC held 45.48% and 49.24%, respectively in IDBI Bank, resulting in a cumulative 94.71% promoter stake.
IDBI Bank earnings
The PSU lender returned to profitability in recent years. For Q3 FY26, the profit improved to ₹1935 crore as against ₹1908 crore in the same period last year. Meanwhile, the net interest income declined 24% year-on-year (YoY) to ₹3209.5 crore in the December quarter as against ₹4,228.2 crore a year ago.
Asset quality improves as gross NPA ratio came in at 2.57% for the third quarter of FY26 as against 3.57% a year ago, down 100 bps. The net NPA ratio remained at 0.18%.
IDBI Bank: Share price outlook
PSU bank stock IDBI Bank is poised for more correction, suggest technical experts.
Anshul Jain, Head of Research at Lakshmishree Investment, said that the recent sharp gap down has effectively trapped breakout buyers, creating a classic long trap and shifting momentum decisively in favour of bears.
“Price structure across higher timeframes has weakened, with supply dominating every recovery attempt. The breakdown now opens the path toward the 50-month moving average near 75, which becomes the first major support to monitor,” he said.
Jain said if selling pressure persists and this level fails to hold, the next logical downside magnet lies near the prior monthly swing low around 64.51. Until the stock reclaims the breakout zone with strong participation, rallies are likely to remain corrective, and the broader bias remains tilted to the downside, he advised.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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