IDBI Bank Shares Plunge Over 13% as Government Set to Scrap Majority Stake Sale Over Low Bids

Shares of

k tumbled sharply in early trading today, dropping more than 13% (with some reports indicating up to 15% at points), following fresh reports that the Indian government is likely to cancel the ongoing process for selling its majority stake in the lender. The steep decline comes after multiple sources confirmed that the financial bids received for a combined 60.7% stake—held by the government (45.48%) and Life Insurance Corporation of India (LIC, 49.24%)—fell short of the undisclosed reserve price set by authorities. The government and LIC had been seeking to divest around 60.7% to transfer management control as part of India's broader privatisation efforts to reduce state ownership in the banking sector. Key potential bidders, including Canada's Fairfax Financial Holdings and Dubai-based Emirates NBD (with earlier mentions of Kotak Mahindra Bank interest), reportedly submitted offers that did not meet the minimum expectations. The process, which began with an Expression of Interest in 2022 and saw financial bids in February 2026, is now expected to be shelved entirely.