Government To Continue IDBI Bank Stake Sale; Shares Jump Almost 8% In Intraday

Finance Minister Nirmala Sitharaman said the disinvestment of IDBI Bank will continue, signalling that the government remains committed to the stake sale despite recent delays. She said this while speaking to reporters on the sidelines of an event in Maharashtra.

The comments come after uncertainty around the transaction following valuation concerns and reports of internal discussions on alternative options. The proposed sale is among the largest banking sector disinvestment plans undertaken by the government.

Following the announcement, IDBI Bank shares jumped almost 8% intraday. After the market closed on 24 April 2026, IDBI Bank shares stood at ₹76.17 apiece on the National Stock Exchange (NSE), up 3.31%.

No Immediate Plan For PSU Bank Consolidation

Sitharaman also said there is no proposal at present to merge public sector banks. A high-level banking committee will examine the issue of consolidation, she added. The remarks came during the inauguration of a new local head office of the State Bank of India in Maharashtra, named ‘Spandan’.

Valuation Gap Behind Delay

The IDBI Bank stake sale process faced a setback last month. The transaction was called off after bids came in below the government’s expectations. Earlier reports indicated that the government was reviewing whether to restart the bidding process.

According to reports, bids were in the range of ₹40,000 crore to ₹45,000 crore. This was lower than the reserve price set for the transaction. Officials were then assessing ways to move ahead without scrapping the existing bids.

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Options Under Discussion

One of the proposals being examined involves Life Insurance Corporation of India (LIC) acquiring the government’s stake. LIC currently holds 49.24% in IDBI Bank. The government owns 45.48%.

Discussions have also included using the bank’s unaffected market price to limit the impact of short-term volatility on valuation. Under the original plan:

• The government wanted to sell 30.48% stake

• LIC had to divest 30.24% stake

• The total stake on offer stood 60.72%

Based on earlier market levels, the combined deal size was estimated at around ₹72,000 crore. Note that the privatisation process has been underway since 7 January 2023.

At that time, the Department of Investment and Public Asset Management had received multiple expressions of interest from bidders.

Sources:

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Moneycontrol