IDBI Bank: The biggest news so far has come on the sale of shares, read what is the new information:The central government currently holds a 45.48% stake in IDBI Bank, while LIC holds a 49.24% stake. The government plans to sell a total of 60.7% of its stake in IDBI Bank.

News Topical, Digital Desk : The IDBI Bank disinvestment process may be stalled. Sources have stated that the bids received for this deal may be lower than the reserve price set by the government. Under disinvestment regulations, the government will be unable to accept these bids, potentially stalling the transaction. The government has been pursuing a disinvestment in IDBI Bank for a long time, but this process appears unlikely at this time.

Sources
have not yet disclosed who submitted the bids and how many, though they have stated that the bids may be below the reserve price and technically unacceptable. This could stall the current disinvestment process. Bids for this deal were received on February 6th, after a process lasting more than three years.

Now, if the government wishes to proceed with the stake sale, it may have to invite new bids. The government has not yet formally confirmed this development. Necessary approvals may also be required to terminate the current process.
After Kotak Mahindra Bank's withdrawal, Fairfax Financial and Emirates NBD were the only potential buyers. However, Emirates NBD is currently moving forward with its plan to acquire a stake in RBL Bank.

Who has what stake?

Currently, the central government holds a 45.48% stake in IDBI Bank, while LIC holds a 49.24% stake. The government was planning to sell a total of 60.7% stake in IDBI Bank, with 30.48% to be offered to the central government and 30.24% to LIC. After the successful completion of the disinvestment, the central government's stake will be 15% and LIC's stake will be 19%.

IDBI Bank's quarterly results

IDBI Bank's third quarter (Q3) net profit increased to ₹1,935.5 crore from ₹1,908.3 crore in the same quarter last year, registering a growth of approximately 1.4%.

However, the bank's net interest income (NII) declined to ₹3,209.5 crore from ₹4,228.2 crore in the same quarter last year, representing a decrease of approximately 24%.

Meanwhile, the bank's net NPA (Non-Performing Assets) improved, falling to ₹425.3 crore from ₹474.2 crore in the previous quarter.