Synopsis:
The Department of Investment and Public Asset Management (DIPAM) confirmed that the due diligence process of IDBI Bank has been completed, and shortlisted bidders now will have full access to the company’s financial details.
The shares of one of India’s largest commercial banks, engaged in the business of monetary intermediation of commercial banks, saving banks, postal savings bank, and discount houses, jumped to 9.93 percent after the documents were finalized, announced by the Department of Investment and Public Asset Management secretary Arunish Chawla.
With a market capitalization of Rs. 1,04,954 crore, the shares of IDBI Bank Limited closed at Rs.97.61, up by 8.30 percent from the previous day’s closing price of Rs.90.13.
Timeline of Disinvestment
In May 2021, the Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi, approved the plan to sell a stake in IDBI Bank and hand over the management to new owners.
In October 2022, a disinvestment plan was announced. In October same year, the government and LIC invited investors to buy a 60.72% stake in IDBI Bank, which includes 30.48 percent stake held by the government and 30.24 percent stake held by LIC.
By January 2023, DIPAM had received several proposals, and the interested buyers were cleared by the Ministry of Home Affairs and found eligible by the Reserve Bank of India.
In August 2025, the government planned to invite financial bidders for disinvestment in the third quarter of FY26, winning bidder was expected to be finalized by year-end.
In the same month, DIPAM confirmed that due diligence was completed, shortlisted bidders will have full access to the financial data of the bank, and the paperwork is being finalized.
Shareholding and Financials
As of June 2025, LIC holds 49.24 percent stake in the company, president of India holds 45.48 percent with public holding 4.59 percent. Revenue from operations rose from Rs.6,670 in Q1FY25 to Rs.7,027 crores in Q1FY26, accompanied by profits of Rs.1,739 Crores in Q1FY25 to Rs.2,024 crores in Q1FY26.
ROE is at 13.6 percent and ROCE is 6.78 percent. IDBI Bank Ltd is among the biggest commercial banks in India. It operates as a universal bank using a modern core banking IT system. The bank provides a wide range of financial and banking services for both retail and corporate customers through its extensive network of branches and ATMs across the country. It also has an international branch in Dubai.
Written by Jhanavi Sivakumar
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