IDBI Bank Share Price Surges 3% on Reports of Government Reviving Bank's Privatisation Process

IDBI Bank shares experienced a notable rise of nearly 4% in Tuesday's trading session. This surge was driven by reports that the government is actively exploring options to reignite the privatisation process of the bank. 

Government's Strategy to Boost IDBI Bank Privatisation 

On May 19, 2026, IDBI Bank shares opened at ₹69.90 and reached an intraday high of ₹72.10. By 10 AM, the shares were trading at ₹72.63, marking a 3% increase, while the Nifty 50 index saw a modest rise of 0.15%.  

The government's renewed focus on privatisation has been a key driver behind this buying momentum. 

According to a Bloomberg report, one of the strategies under consideration is reducing the reserve price by up to 20%.  

This comes after potential buyers hesitated in the previous round, which was halted in March. Efforts are being made to set a price that reflects the bank's intrinsic value, reducing reliance on its share price. 

Challenges and Past Performance of IDBI Bank Shares 

Despite the recent uptick, IDBI Bank shares have underperformed in 2026, declining over 30% year-to-date compared to a 9.5% drop in the Nifty 50.  

From a high of ₹118.38 on January 5, 2026, the stock has fallen 40% to its current levels. The privatisation process was previously halted as financial bids were below the reserve price set by the inter-ministerial group on disinvestment. 

Read More: Banks Support RBI Proposal for 1-Hour Digital Payment Delay, Seeks ₹25,000 Threshold Limit! 

Finance Minister's Assurance on Disinvestment 

Finance Minister Nirmala Sitharaman recently reaffirmed the government's commitment to its disinvestment plan, stating that the IDBI disinvestment will proceed.  

The stake sale was initially scrapped due to bids not meeting the reserve price, but the government remains determined to move forward with the process. 

IDBI Bank Share Price Performance 

As of May 19, 2026, at 10:29 AM, IDBI Bank share price on NSE was trading at ₹71.78 up by 3.28% from the previous closing price. 

Conclusion 

IDBI Bank shares have seen a 4% rise as the government evaluates strategies to revive its privatisation efforts. This development comes amidst a backdrop of previous challenges in the privatisation process, with the government now focusing on setting a feasible reserve price. 

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