IDBI Bank Shares Drop Amid Reports Government May Scrap Majority Stake Sale

Shares of IDBI Bank fell sharply, dropping up to 16.5% on March 16, 2026, following reports that the Indian government may scrap its planned majority stake sale due to bids falling below the reserve price. The government and LIC jointly hold over 94% of the bank and had sought to divest around 60.7%. Potential bidders included Fairfax Financial and Emirates NBD, but the sale process is now uncertain, with IDBI Bank stating it has received no official communication on cancellation. The government may consider reopening the sale if market conditions improve.