IDBI Bank Share Price: According to reports, the government has canceled the plan to sell PSU shares…
highlights
- On Monday, IDBI Bank shares fell by about 15% to Rs 78.
- It joined the weak performing stocks of the banking index.
- The stock faced a sharp fall after the news of the government stopping the stake sale.
Around 10 am, IDBI Bank shares were trading at around Rs 79.35, down 13.94%. Despite the sharp fall in the stock today, IDBI Bank has given good returns to investors in the last one year.
Why did IDBI Bank shares fall?
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According to reports, the government has canceled plans to sell PSU shares as the bids received were lower than the minimum price that was expected. The Government of India and state-owned Life Insurance Corporation (LIC) had started the process to sell 60.7% stake in the bank in 2022.
News agency Reuters, quoting people familiar with the matter, said that the current sale process would be canceled because the bids received were below the ‘reserve price’ (i.e. the minimum selling price) fixed for the sale.
Other shares of the banking sector also remained under pressure, due to which BSE BANKEX fell by about 0.4% to the level of 60,198.5. Today, there was a big fall in the shares of private banks in early trading. Major falling stocks included Federal Bank (fall of about 2%), IndusInd Bank (fall of about 2%). On the other hand, AU Small Finance Bank was among today’s top gainers.
condition of benchmark index
Major indices of the market also showed slight weakness. In early trade, BSE Sensex was trading down by about 0.2% at 74,393.6, later it was seen trading in the green. Nifty 50 was trading around 23,150.
IndusInd Bank and Mahindra & Mahindra were the major falling stocks in the Sensex. Larsen & Toubro and Hindalco Industries were among the top losers in Nifty.
IDBI Bank’s performance
On the financial front, IDBI Bank reported 1.6% year-on-year growth in net profit at Rs 1,959.4 crore in the December 2025 quarter. It was Rs 19,29 crore in the same period last year. However, the bank’s net sales during the quarter declined by 9.5% to Rs 70,80 crore from Rs 78,19 crore a year ago.
In the last one year, IDBI Bank shares have increased from Rs 72.7 to Rs 85.8. During this period, the stock registered a rise of about 18%. Whereas BSE BANKEX index increased from 55,234.6 to 60,198.5 in the last 12 months, i.e. an increase of about 9%.
Due to the current weakness of the market and pressure in the banking sector, the stock may remain volatile. At present, the price-to-earnings (P/E) ratio of IDBI Bank is around 9.9, which can be considered attractive according to the banking sector.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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