IDBI Bank Divestment Likely by Year-End, Says DIPAM Secretary

The government is on track to complete the strategic sale of IDBI Bank by the end of the current financial year. According to DIPAM Secretary Arunish Chawla, interested buyers have almost finished their due diligence. He said that all required data and documents have been provided, and the process should be completed by September 2025.

Following his statement, IDBI Bank’s stock jumped 9% and closed at ₹98.16.

Broader Disinvestment and Delisting Plans

Chawla also shared that the government aims to achieve ₹47,000 crore from asset monetisation in FY26, out of which ₹22,000 crore has already been raised in Q1.

He added that PSU companies with over 90% government ownership will be brought down to 90%, and those between 75–90% will be reduced to 75%, to ensure enough market float.

Updates on LIC

On LIC, Chawla said that any decision on stake sales will be taken by SEBI, DIPAM, LIC, and merchant bankers together. LIC’s market value is around ₹6 lakh crore, meaning even a 1% stake equals about ₹6,000 crore. Future sales will be planned carefully to match market liquidity.

Push for Better Dividend Policies

The secretary also emphasised that public enterprises should set an example in dividend payouts. He highlighted the government’s rule of paying 30% of profit after tax or 4% of net worth, whichever is higher, as dividends.

“We made the highest dividend last year, and this year we hope to sustain or even improve,” he said.

Also Read: Upcoming Dividends in August 2025: Eicher Motors, MCX, and PTC India, Among Others!

IDBI Bank Share Price Movement

IDBI Bank share price (NSE: IDBI) was trading at ₹96.10 on August 22, 2025, at 12:25 pm, down by ₹1.48 or 1.52%. During the session, the stock opened at ₹97.53, touched a high of ₹97.53, and a low of ₹94.80. The company has a market capitalisation of ₹1.03 lakh crore, with a price-to-earnings (P/E) ratio of 13.08. It offers a dividend yield of 2.18%, and the quarterly dividend amount stands at ₹0.52 per share. Over the past 52 weeks, the stock has touched a high of ₹106.32 and a low of ₹65.89.

Conclusion

With IDBI Bank’s divestment nearing completion and wider disinvestment plans in motion, the government is pushing for more efficient PSU management, better dividend policies, and higher market participation. These steps reflect its long-term strategy to unlock value and strengthen capital markets.

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