IDBI jumps 16% after government announces stake sale

Shares of IDBI Bank jumped over 15 per cent on Saturday after the Finance Minister Nirmala Sitharaman in her Budget speech said the government will divest remaining stake in the lender.

The government holds 47.11 per cent in the bank as of December quarter shareholding data. Life Insurance Corporation holds 51 per cent in the company.

Sitharaman also increased bank deposit insurance cover from Rs 1 lakh to Rs 5 lakh. She also proposed to amend bank regulations to strengthen co-operative banks.


Vijay Kumar Gupta, former member of central council, ICAI and Insolvency Professional, KVG Insolvency Advisors, said the increase of deposit cover was much awaited.

“Deposit insurance coverage increase from Rs 1 lakh to Rs 5 lakh will bring more trust among the masses in the banking system,” Gupta said.

The shares of the lender closed 10.03 per cent higher at Rs 37.30 on BSE.