By BusinessToday24 Desk
IDBI Bank has emerged as India’s most searched financial entity today, as its share price witnessed a significant surge following a string of developments—including a dividend declaration and fresh updates on the bank’s long-anticipated privatization.
On Friday, shares of IDBI Bank jumped by over 5.4% intraday, hitting a high of ₹98.95 on the NSE. The stock has gained more than 10% in the past week and is currently trading well above its 200-day moving average, signaling strong bullish momentum.
Dividend Boost
The rally was partly fueled by the bank’s latest dividend announcement. On June 26, IDBI Bank declared a ₹2.10 dividend per share, up from ₹1.50 the previous year. The record date has been set for July 15, making the stock attractive to yield-seeking investors. At current levels, the dividend yield stands at approximately 2.1%.
Privatization Progress
Adding further to the optimism, government sources indicate that the strategic disinvestment of IDBI Bank is moving closer to reality. The Inter-Ministerial Group (IMG) has reportedly finalized the Share Purchase Agreement, and financial bids are expected to be invited by September 2025.
Currently, the Government of India and LIC jointly hold a majority stake of 60.72% in the bank. The planned sale could potentially transfer management control to a private entity for the first time since IDBI’s nationalization, sparking widespread interest among institutional investors and the broader market.
Technical & Fundamental Strength
Technical analysts have observed a breakout from a long-term consolidation pattern, suggesting a potential short-term target of ₹110–₹120. Momentum indicators also reflect strong buyer interest, supported by the bank’s improved asset quality and rising profitability.
IDBI reported a healthy net profit growth in the last quarter, with significant improvements in both gross and net NPA ratios. The bank’s Capital Adequacy Ratio (CAR) remains strong at over 18%, further strengthening its investment appeal.
Outlook
As retail and institutional interest in the counter continues to climb, IDBI Bank is firmly in the spotlight for traders, long-term investors, and policymakers alike. With both dividend benefits and disinvestment momentum in play, analysts expect continued volatility—but see an upside bias in the near term.
