IDBI Bank Q2 Business Grows 18% to ₹6.27 Lakh Crore

IDBI Bank (

) attracted investor attention today as expectations around its long-running privatisation process combined with encouraging Q2 FY27 business growth. The bank’s market capitalisation increased by more than ₹11,460 crore during the rally, bringing the focus back to the potential ownership transition. What Is Driving Investor Interest? The government plans to sell its 30.48% stake in IDBI Bank, while LIC intends to divest another 30.24%. Fairfax has emerged as the frontrunner in the proposed transaction, with reports indicating an offer of around ₹81 per share. However, the deal remains subject to regulatory approvals and completion of the privatisation process. The bank’s provisional Q2 FY27 business update also showed encouraging growth: * Total business increased **18% year-on-year to ₹6.27 lakh crore**. * Total deposits rose 17% to ₹3.56 lakh crore. * CASA deposits grew 12% to ₹1.56 lakh crore. * Net advances increased 18% to ₹2.72 lakh crore. My View IDBI Bank offers two distinct factors for investors to track: the potential value-unlocking event from privatisation and the underlying performance of its banking business. However, the privatisation premium should not be treated as a certainty until the transaction progresses through the required approvals. Investors should also assess deposit quality, loan growth, margins and profitability as the bank enters the Q2 earnings season. The key question is whether the ownership transition and improving business momentum can translate into sustainable shareholder value. Until the deal is finalised, expectations around privatisation remain a potential catalyst—not a guaranteed outcome.