Govt May Restart IDBI Bank’s Privatisation Process After Low Bidding

The government may restart the privatisation process of IDBI Bank Limited. The earlier attempt was called off last week after financial bids came in below the reserve price, as per people familiar with the matter.

A panel of ministers handling the divestment will be briefed soon. A final decision on the next steps is expected after that.

How Did The Bank Respond?

IDBI Bank recently responded to market rumours that had triggered noticeable movement in its stock. The bank stated that it has not been informed by the government about cancelling the disinvestment process. It confirmed that it remains committed to regulatory compliance under the market regulator's guidelines.

The earlier process had followed RBI (Reserve Bank of India) and government guidelines. The reserve price for IDBI Bank’s stake was based on the stock price, which surged ahead of the bidding process, reaching a 52-week high of ₹118.38 on 5 January 2026.

Well-known investors, including Prem Watsa’s Fairfax Financial and Emirates NBD, were understood to have submitted financial bids.

Officials said that while the process will begin afresh, current candidates can submit new bids without needing fresh approvals from regulators or other agencies. This is intended to avoid delays and keep the divestment on track.

IDBI Bank Holding Structure

The government owns 45.48% of IDBI Bank, while the state-run Life Insurance Corporation (LIC) holds 49.24%. The remaining 5% of shares are owned by the public. This means the government and LIC continue to hold most of the control, while the small public holding limits the stock’s liquidity.

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Investor Takeaway

Analysts remain cautiously optimistic, though uncertainty continues to weigh on IDBI's stock. Support for the stock is expected at ₹68 to ₹73, while immediate resistance is expected at ₹78 to ₹82.

IDBK Bank shares have fallen sharply after the financial bids for its privatisation were scrapped. On Tuesday, the stock dropped another 19% and closed at ₹74.28 on the National Stock Exchange of India (NSE).

With the government restarting the process from scratch, investors should monitor updates closely, as fresh bids or policy changes could influence market sentiment and stock performance.

Sources:

The Economic Times

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