IDBI Bank share price jumps 5% on reports of stake sale to LIC

IDBI Bank share price jumped over 5 per cent to log its biggest intraday percentage gain since June 7 on reports the government is looking to sell stakes in the lender. The stock rallied as much as 5.35 per cent to Rs 61 on the BSE.

The government is considering to divest 40-43 per cent stake in IDBI Bank to Life Insurance Corporation of India, potentially yielding it Rs 10,000-11,000 crore, news agency NewsRise reported, citing an unnamed Finance Ministry official.

As per stock exchange data, the government holds about 81 per cent stake in IDBI Bank, while LIC holds 10.8 per cent as on March 31.

The report said that the LIC board has approved the “initiative” to take stake in the bank. Spokesmen for IDBI Bank and the Finance Ministry said they have no immediate comment. LIC did not immediately respond to a request for comment, reported Reuters.

More than 18.7 million IDBI Bank shares changed hands, compared with the 30-day average of 12.7 million shares.

WATCH ZEE BUSINESS VIDEO HERE 

The stock is the biggest percentage gainer on the Nifty PSU bank index. The stock has fallen 3.5 per cent this year up to Thursday, compared with a 21.3 per cent decline in the Nifty PSU bank index.