IDBI Bank drops 8% on reports Govt shelves stake sale consideration

NEW DELHI: Shares of IDBI Bank dropped over 8 per cent in Thursday's trade amid reports that the government has shelved a plan to dilute its stake in the state-run lender. The government held 76.50 per cent stake in the bank at the end of the September quarter.

Reports said the government had now decided not to reduce its stake in the lender below 52 per cent.


The stock fell 8.40 per cent to hit a low of Rs 64.30 on BSE. At this price, the stock has lost one-third of its market capitalisation, since it hit its 52-week high of Rs 95.70 on December 3, 2015.

Unlike other public sector banks, IDBI Bank is not covered by bank nationalisation laws and there is no legal restriction on the government holding less than 51 per cent, TNN reported. This had prompted suggestions that the Mumbai-based lender should be a test case for the government to shed its stake below 51 per cent, TNN said in the report.