IDBI Bank share price surged nearly 9% in heavy trading, touching their highest level in almost a year. The rally reflects rising investor confidence, strong fundamentals, and renewed market interest in the banking sector.
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IDBI Bank shares moved higher by 9 per cent to ₹104.10 on the BSE in Tuesday’s intraday trade, amid heavy volumes. The stock price of the private sector bank was quoting close to its 52-week high level of ₹ 106.34, which it touched on June 30, 2025.
The average trading volume on the counter jumped over eight-fold with 76.1 million equity shares, representing 13.4 per cent of total free-float equity of IDBI Bank, having changed hands on the NSE (70.47 million shares) and BSE (5.63 million shares) till 01:48 PM.
Why is IDBI Bank stock in focus?
As on September 30, 2025, Life Insurance Corporation of India (LIC) (49.24 per cent) and Government of India (GoI) (45.48 per cent), together, held 94.71 per cent shareholding in the IDBI Bank. They, however, have stated their intent to divest their shareholding in the bank through a strategic stake sale with an intent to hand over management control in the bank.
The GoI, acting through the Department of Investment and Public Asset Management (DIPAM), had invited expressions of interest from potential investors in October 2022. Even as the process to dilute their respective stakes in IDBI Bank has progressed, the conclusion and eventual finalisation of new stakeholders is still awaited. The extent of the respective shareholding to be divested by GoI and LIC will be decided at the time of structuring the transaction, in consultation with the Reserve Bank of India (RBI).
The Government of India is confident of completing the stake sale in IDBI Bank before the end of the current financial year (FY26).
The measures come against IDBI Bank’s improving asset quality. In the September 2025 quarter (Q2FY26), the bank’s gross non-performing assets (NPAs) declined to 2.65 per cent from 3.68 per cent in Q2FY25 and the net NPAs reduced to 0.21 per cent from 0.2 per cent, aligning well with its peers.
The consistent decline in gross NPAs and net NPAs reflects the bank’s enhanced risk management framework across corporate and retail segments through centralised loan processing, enhanced monitoring, and exposure controls, India Ratings (Ind-Ra) said. It expects the gross and net NPAs to remain stable through FY26 and FY27.
IDBI Bank continues to benefit from recoveries from its legacy stress assets, leading to an improvement in its profitability. Besides, the lower credit cost has supported healthy internal capital generation, contributing to the strengthening of IDBI Bank’s capitalisation profile and improving its loss-absorption capability. Rating agency ICRA expects recoveries to continue supporting the profitability through the quantum of recoveries is expected to reduce.
IDBI Bank Outlook
Apart from the steady growth in advances and the consequent improvement in its core income and profit, IDBI Bank continues to benefit from the recoveries from significantly provisioned stressed assets. The operating profitability is supported by strong recoveries from written-off accounts while credit and other provisions also remained low, supporting the overall profitability.
Bank has been scaling up its granular loan portfolio, comprising retail and priority sector segments, while augmenting its well-rated corporate loan book with an optimal mix of fund and non-fund exposures. Bank, while growing its advances portfolio, has also been focusing on maintaining a healthy loan portfolio and managing its credit risk effectively by strengthening its credit underwriting process and close monitoring of its loan accounts, IDBI Bank said in its FY25 annual report.
FAQs:
1. Why is IDBI Bank stock rising today?
IDBI Bank shares jumped nearly 9% due to heavy buying volumes and strong investor sentiment in the banking sector.
2. Is IDBI Bank nearing its 52-week high?
Yes, the stock is close to reaching its 52-week high following a surge in trading activity.
Analysts attribute the spike in volume to institutional buying and positive market outlook for banking stocks.
4. Should investors buy IDBI Bank at current levels?
Market experts suggest watching for consolidation before making new entries, though sentiment remains bullish.
5. What are the key factors driving IDBI Bank’s performance?
Improving asset quality, stronger balance sheet, and better earnings outlook have boosted investor confidence.
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This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.