IDBI Bank Share Price in Focus as DIPAM Receives Financial Bids for Strategic Disinvestment

IDBI Bank share price is expected to remain in focus after the government confirmed that it has received financial bids for the bank’s strategic disinvestment. The update has brought fresh attention to the privatisation process, which has been delayed for more than three years.

The government, along with Life Insurance Corporation of India (LIC), is looking to sell a combined 60.72% stake in IDBI Bank. This includes 30.48% held by the central government and 30.24% owned by LIC.

What DIPAM’s Update Means for the Disinvestment Process

The Department of Investment and Public Asset Management (DIPAM) has stated that the financial bids will now be evaluated as per the prescribed procedure. While no further details have been disclosed, this step is important because it signals that the sale process has moved into a more advanced stage.

The privatisation journey began in October 2022, when Expressions of Interest (EoIs) were invited. By January 2023, multiple EoIs had already been received.

What Happens Next: Reserve Price and Bid Opening

The next major step in the strategic disinvestment process will be the fixation of a reserve price. This reserve price will be based on valuations done by the Transaction Adviser and the Asset Valuer, using their respective methodologies.

Once the reserve price is finalised, the sealed financial bids that have already been received will be opened in the presence of the bidders. The successful bidder will be the one offering the highest valid price, provided it is above the reserve price.

After this, the Alternative Mechanism, which is empowered by the Cabinet Committee on Economic Affairs, will review and approve the highest bid.

IDBI Bank’s Q3 FY26 Performance

IDBI Bank reported an almost flat net profit of ₹1,935 crore for the quarter ended December 2025, compared to ₹1,908 crore in the same quarter last year.

However, the bank’s total income declined to ₹8,282 crore from ₹8,565 crore year-on-year. Interest income also fell to ₹7,074 crore, compared to ₹7,816 crore a year earlier.

On the positive side, the bank’s gross NPA ratio improved to 2.57%, from 3.57% last year.

Read more: HRA Tax Exemption May Expand to More Cities Under Draft Income-tax Rules 2026.

Conclusion

The receipt of financial bids marks a key milestone in IDBI Bank’s long-awaited privatisation process. With the next step being reserve price fixation and bid opening, the coming weeks could be crucial for both investors and market watchers. The update also explains why IDBI Bank shares may see heightened activity in the near term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.