IDBI Bank Share: There has been a big fall in the shares of IDBI Bank since last one week. The situation is that it has crashed by about 35 percent from its recent highest level of Rs 118.5. With this, the share has also reached very close to its 52-week lowest level of Rs 72.04.

Last Monday (March 16), the shares fell by about 15-16 percent in just one session. Due to this huge fall in the shares, more than Rs 18500 crore has been wiped off the market value of the bank. This has also troubled investors.

Why are shares falling?

The uncertainty surrounding the privatization of the bank is a major reason for this. The government and the Life Insurance Corporation of India (LIC) were thinking of selling most of their stake in the bank. However, it is now being told that the government has postponed the decision to sell its 60.72 percent stake in the bank for the time being. There was a rise in the shares for a long time in the hope of privatization of the bank, but now suddenly after the news of the deal getting stuck, the selling of shares intensified.

However, the bank has said that no official information has been received yet about the cancellation of the government process for privatization of the bank. Apart from this, the decline in the net interest margin (NAM) of the bank and a stagnation in profits are also a reason for investors to be disappointed.

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2026 can bring big changes for the Indian banking sector. The government is preparing to accelerate the mega merger of public sector banks, which is linked to the goal of Developed India 2047. The objective is to create a strong, large and globally competitive bank. Indications from the Finance Minister and RBI suggest that the third phase of banking consolidation may begin soon. In the first two phases, the number of government banks has reduced from 27 to 12. Also, the process of privatization of IDBI Bank is fast, which is targeted to be completed by March 2026. PSBs’ performance is at record levels and profits may cross ₹2 lakh crore. The system is being strengthened by foreign investment in private banks and 100% FDI in the insurance sector.

IDBI Bank: The government has taken a step forward in the process of selling its stake of $7.1 billion in IDBI Bank Limited, which is equal to 60.72 percent. Now arrangements can be made to bid for it soon. This is an important step in the long-running efforts to privatize this already troubled bank and accelerate divestment efforts.

According to people with knowledge of the matter, talks with potential buyers for this are at an advanced stage. It is also being told that the bidding process can be started from this month itself. If everything goes well then privatization of a government bank will happen after decades.

The condition of the bank has improved in recent years

The government aims to sell its 60.72 percent stake in this Mumbai-based bank, which is approximately $ 7.1 billion as per the current market price of IDBI Bank. Burdened with heavy debt, this bank has emerged from cleanup in recent years. The bank returned to profit after capital support and a rapid recovery helped it sharply cut non-performing assets.

When will privatization happen?

Since the bank is profitable today, the outstanding loans are being repaid and the condition of the balance sheet has also improved, the government is now ready to hand it over to private hands, but due to many other problems like delay in getting regulatory approval, the government missed the previous deadline to complete the sale. The government says that privatization will be completed by March 2026.

Who is involved in the bidding race?

The shortlisted bidders are currently carrying out due diligence i.e. examining the bank closely. Kotak Mahindra Bank Limited, Emirates NBD PJSC and Fairfax Financial Holdings Limited had shown interest in buying the bank. The Central Government and the government company Life Insurance Corp of India together have about 95 percent stake in IDBI Bank. The government will sell its 30.48 percent stake in the bank, while LIC will sell 30.24 percent stake with the transfer of management control.

What will be the impact on customers?

After the sale of the bank, its move towards privatization will undoubtedly bring some changes, but it will not affect the bank account holders. Bank account, loan amount, everything will remain the same as before, but after privatization, customers can get better facilities. Some minor changes may have to be made such as login ID may be changed or changes may be made in the check book or pass book. Its effect can also be seen on bank shares in the coming time.

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Supertech: The CBI has lodged an FIR against Noida’s well-known construction company Supertech Limited and its promoter RK Arora and others. They are accused of cheating Rs 126.07 crore from IDBI Bank. CBI officials said on Monday that the FIR includes Arora as well as Sangeeta Arora, Mohit Arora, Parul Arora, Vikas Kansal, Pradeep Kumar, Anil Kumar Sharma and Anil Kumar Jain.

CBI raided on Thursday

The CBI on Saturday searched the bases associated with the accused in Noida and Ghaziabad in connection with the case. During the raid, the agency seized cash worth Rs 28.5 lakh. Action was taken against them after the complaint of IDBI Bank. The bank has alleged that the company and its directors took a loan of 200 crores from the bank by submitting fake documents and a total of Rs 126.07 crore was wrongly grabbed. The bank, terming this account as ‘willful defaulter’, has put it in the fraud category. ‘Willful defaulters’ are called those who do not deliberately repay the debt.

200 crore loan was approved in 2014

According to the IANS report, the CBI on Thursday lodged an FIR based on the complaint lodged by Hari Kumar Meena, Deputy General Manager of NPA Management Group of IDBI Bank, New Delhi through its bank Securities and Fraud Branch. According to this, under the Consortium Banking system with Union Bank of India, the bank sanctioned a term loan of Rs 200 crore to Supertech in 2014. However, since March 2017, they are missing out on paying the loan amount. It also has an outstanding amount of Rs 126.07 crore of IDBI Bank.

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