IDBI Bank Share Price Rallies 9%, Nears 52-Week High; Asset Quality Improves Sharply

IDBI Bank share price (NSE: IDBI) surged 9% to ₹104.10 on the BSE in Tuesday’s intraday trade, inching close to its 52-week high of ₹106.34 hit in June 2025. The counter saw massive activity, with 76.1 million shares changing hands across the NSE and BSE, around 13.4% of its free-float equity.

Ownership and Stake Sale Plans

As of September 30, 2025, LIC held 49.24% and the Government of India held 45.48% in the bank. Together, they own 94.71% of IDBI Bank’s equity. 

Both shareholders have expressed intent to divest their stakes through a strategic sale, transferring management control to new investors. The DIPAM had invited investor interest in October 2022, and the government aims to complete the stake sale by FY26-end.

Financial and Operational Strength

IDBI Bank’s asset quality has improved significantly. In Q2FY26, gross NPAs fell to 2.65% from 3.68% a year ago, while net NPAs declined to 0.21%, showcasing better credit management.

According to India Ratings, the bank’s enhanced monitoring, centralised loan processing, and tighter exposure control have contributed to this improvement.

Profitability and Growth Outlook

The bank’s profitability continues to improve, aided by recoveries from legacy stressed assets and a lower credit cost, which strengthens its capital position. IDBI Bank is also focusing on expanding its retail and priority sector loans, while maintaining a balanced, high-quality corporate portfolio.

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Conclusion

IDBI Bank’s stock rally reflects renewed investor confidence, driven by strong financial recovery, declining NPAs, and anticipation of the government’s stake sale. With improving fundamentals and stable profitability, the bank is well-positioned for long-term growth.

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