Stock to BUY: IDBI Bank near 15-year high; Why the share may still have room to run

IDBI Share Price Today: Shares of IDBI Bank climbed as much as 4 per cent to an intra-day high of Rs 113.50 on the NSE on Thursday, extending their recent rally even as broader markets remained under pressure.

At around 13:09 am, the stock was trading over 1 per cent higher at Rs 111.57, with brisk volumes of nearly 20 million shares changing hands on the exchange. In contrast, the benchmark Nifty 50 index was down about 0.51 per cent, or 135 points, at 25,643.

Near 15-year high in focus

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The latest move comes after IDBI Bank touched a multi-decade high of Rs 118.30 in January 2026, a level last seen in May 2011. The stock has remained in focus since then, supported by expectations around the government’s plans to pare its stake.

So far in February, IDBI Bank shares have gained close to 13 per cent, with sentiment improving after the Union Budget 2026 rekindled hopes of divestment in public sector undertakings.

Budget push lifts divestment hopes

In the Union Budget 2026–27, the government set a disinvestment target of Rs 80,000 crore, to be achieved through stake sales in PSUs and asset monetisation.

ICICI Securities, in a recent note, pointed out that the Centre’s FY27 disinvestment target is 135 per cent higher than the FY26 estimate of Rs 33,837 crore. According to the brokerage, the government may be relying on large-ticket transactions such as stake sales in IDBI Bank and Life Insurance Corporation of India (LIC).

Finance Minister Nirmala Sitharaman has said the government will pursue all cabinet-approved disinvestment proposals, signalling continuity in its divestment strategy. ICICI Securities also noted that additional stake dilution in select PSU banks could be undertaken to meet minimum public shareholding norms.

Stake sale process underway

As of the December 2025 quarter, LIC held a 49.24 per cent stake in IDBI Bank, while the Government of India owned 45.48 per cent. Together, the two shareholders controlled 94.71 per cent of the bank’s equity. Both have earlier indicated their intention to divest their holdings through a strategic stake sale.

IDBI Bank has clarified that the strategic disinvestment process is currently underway and is being handled entirely by the Department of Investment and Public Asset Management (DIPAM).

IDBI Q3FY26 result highlights

IDBI Bank Ltd. reported its earnings for the third quarter on Saturday, January 17. Its net profit increased 1.4 per cent to Rs 1,935.5 crore from Rs 1,908.3 crore in the previous year. The lender's net interest income (NII) declined 24 per cent to Rs 3,209.5 crore from Rs 4,228.2 crore in the third quarter of the previous year. IDBI Bank's net non-performing assets (NPA) declined to Rs 425.3 crore from Rs 474.2 crore in the previous quarter. Its net NPA margin contracted to 0.18 per cent from 0.21 per cent in the previous quarter. However, its gross NPA increased to Rs 6,281 crore from Rs 6,242 crore in the second quarter. The lender's gross NPA contracted to 2.57 per cent from 2.65 per cent sequentially. IDBI Bank shares declined 0.44% in the previous session to close at Rs 104.39 apiece. The stock has gained 24.3 per cent in the past year.