IDBI Bank Shares Fall 4% on Privatisation Updates, Market Weakness

Shares of IDBI Bank declined sharply on February 9, 2026, slipping up to 4% intraday to around ₹103. The fall came after fresh updates on the government’s strategic disinvestment plan, which reignited uncertainty around the bank’s ownership transition.

The pressure intensified after Kotak Mahindra Bank confirmed that it will not bid for the stake, narrowing the list of potential suitors. Global financial players such as Fairfax Financial and Emirates NBD remain in the race, but the lack of domestic private bank participation weighed on investor confidence.

Weak Market Sentiment Adds to Selling Pressure

The stock had already shown signs of weakness earlier in the week. On February 6, IDBI Bank saw elevated trading volumes but still closed nearly 3% lower at ₹104.05, underperforming the broader private banking space. A sharp correction in benchmark indices, including the Sensex, further dragged banking stocks, amplifying the downside in IDBI Bank shares.

Privatisation Plan Keeps Stock in Focus

The government and LIC are jointly planning to divest a 60.7% stake in IDBI Bank as part of the long-pending privatization exercise. With DIPAM (Department of Investment and Public Asset Management) having received financial bids, the process has now moved to the reserve price evaluation stage. Any delay or lack of clarity at this phase is keeping the stock highly sensitive to news flow.

Outlook: Volatility Likely to Persist

While IDBI Bank has delivered strong gains over the past year, near-term volatility is expected to continue as investors await definitive progress on the stake sale. Until there is clarity on the final bidder and transaction timeline, the stock is likely to remain driven more by headlines than fundamentals.