IDBI Bank Shares Plunge 15% as Indian Government Scraps Privatization Plans

IDBI Bank shares experienced a massive sell-off on the National Stock Exchange, dropping as much as 15.35% to hit ₹78.05. The sharp decline followed reports that the Indian government is set to scrap its long-running strategic sale of the lender. Sources indicate that the decision was prompted by financial bids coming in significantly below the government's fixed reserve price for the transaction. This setback removes the privatization premium that had been a key driver for the stock's valuation and investor sentiment over the recent period. The collapse of the deal represents a major hurdle for the government's broader disinvestment targets and long-term banking reforms. Market analysts suggest that the removal of this catalyst could lead to sustained downward pressure on the stock as investors recalibrate their positions. The broader impact is also being felt across the NIFTY BANK index as sentiment toward state-linked lenders cools.