IDBI Bank Divestment: Govt Seeks Bids For 60.72% Stake In $7.1 Billion Sale This Month

Friday, December 05, 2025: The government of India is planning to seek bids for the stake, 

for its majority stake in IDBI Bank, marking one of the largest state-backed bank divestments in decades. The Centre, along with LIC, together owns 60.72% in the lender—valued at around $7.1 billion at current market levels.

What is the Government Plan?

The government of India is planning to seek bids to sell its stake in IDBI Bank. The government holds a 60.72% stake in IDBI Bank, which is valued at about US $7.1 billion at the current market price. This will be one of the biggest government-backed divestments of a bank in decades. The government is planning to complete the divestment within the current fiscal year, that is, before the end of March 2026.

Why Is the Divestment Being Done?

The efforts to finally privatise IDBI Bank have been going on for a while. The divestment will mark a major milestone in the same. It is also an ideal time to do the same, as the bank has drastically recovered from its financial and operational pit. Earlier, the bank was burdened by high bad loans and non-performing assets. However, after major capital support and aggressive recoveries, it returned to profitability.

The Divestment Plan

Under the divestment, both the government and a government-owned entity will sell their stake in the bank. The government will directly sell about 30.48% of IDBI’s stake, whereas government-owned insurer Life Insurance Corporation of India (LIC) plans to sell about 30.24%. The divestment will also involve a change of management control. 

Has the Bidding Started?

The bidding has not formally started yet. It is expected that the government will formally invite bids within this month. Until the bids are formally invited, the interested investors will do their due diligence. Some of the potential investors who have already shown interest in acquiring the bank’s stake include Kotak Mahindra Bank, Emirates NBD PJSC, and Fairfax Financial Holdings Ltd. They have so far received the “fit-and-proper” clearance from regulators. 

Stock Market Snapshot of IDBI Bank

The share price of IDBIBank opened in green at ₹98.25. However, as of December 05, 2025, 12:30 pm, the shares were trading in the red at ₹97.44, a 0.20-point or 0.20% fall from their previous close. The bank has had a muted trading session, with its total quantity at 71.36% Sell and 28.64% Buy. The traded volume and trade quantity so far are at 38.81 Lakhs and ₹37.86 Cr, respectively. The total market cap of the company is at ₹1,04,814.42 Cr.

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