The much awaited and long-pending strategic disinvestment of IDBI Bank is likely to fall through, with sources indicating that the bids received are likely below the reserve price set for the deal. Under these circumstances, as per disinvestment rules, the government may not be able to accept the bids, potentially stalling the transaction.Sources also said the reserve price set for the stake sale was considered too high and was not aligned with the bank’s price-to-book ratio. They added that the relatively low free float in the stock had also impacted share price movement, complicating the valuation benchmark used for the disinvestment.
The bids were received on February 6, following a nearly three‑year‑long rigorous process. To move ahead with the stake sale, the government may have to invite fresh bids.
The government is yet to formally confirm the development and approvals are likely to be required to terminate the current process.Fairfax Financial and Emirates NBD were the remaining suitors after Kotak Mahindra Bank opted out of the process. Emirates NBD is already in the midst of its transaction to acquire a stake in RBL Bank.The Centre holds 45.48% stake in IDBI Bank and LIC holds another 49.24% stake. The Centre is looking to sell 60.7% combined stake in IDBI Bank, including 30.48% held by it and 30.24% held by LIC. The Centre will hold 15% and LIC will hold 19% stake in IDBI post the divestment.IDBI Bank Q3 resultsIDBI Bank’s net profit increased 1.4% to ₹1,935.5 crore from ₹1,908.3 crore in the previous year. The lender’s net interest income (NII) declined 24% to ₹3,209.5 crore from ₹4,228.2 crore in the third quarter of the previous year. IDBI Bank’s net non-performing assets (NPA) declined to ₹425.3 crore from ₹474.2 crore in the previous quarter.(Edited by : Ajay Vaishnav)First Published: Mar 13, 2026 8:58 PM IST
Source link
