IDBI Bank Shares Fall 7% After Fairfax Deal Gets Cabinet Approval

IDBI Bank shares fell over 7% on October 15, 2026, after rising nearly 13% in the previous session. The earlier rally followed Cabinet approval of Fairfax Financial Holdings’ proposed acquisition of a 60.72% stake in the bank.

The ₹52,878 crore deal marks a major step in IDBI Bank’s privatisation. Investors are now watching the next steps in the transaction and the bank’s financial performance.

IDBI Bank Share Price Today

IDBI Bank shares fell to ₹83.87 on October 15, compared with the previous session’s high of ₹93.60.

Market Detail	Figure
Share price on October 15	₹83.87
Intraday decline	Over 7%
Previous session’s rally	Nearly 13%
Proposed deal value	₹52,878.08 crore

Why Did IDBI Bank Shares Fall?

The fall came after the stock’s sharp rally in the previous session. Investors appeared to book profits following the positive news about the Fairfax deal.

Profit-booking happens when investors sell shares to secure gains after a price rise. However, the available information does not confirm whether this was the only reason for the decline.

Fairfax Deal: Key Details

The Union Cabinet approved the proposed sale of a combined government and LIC stake in IDBI Bank to a Fairfax subsidiary.

Deal Detail	Information
Proposed buyer	Fairfax Financial Holdings’ subsidiary
Stake being acquired	60.72%
Deal value	₹52,878.08 crore
Fairfax bid price	₹81 per share
Average fair valuation	₹75.99 per share
Government’s expected remaining stake	15%
LIC’s expected remaining stake	19%

The deal still requires regulatory clearances, including the RBI’s fit-and-proper assessment, before completion.

IDBI Bank’s Financial Turnaround

IDBI Bank has improved its asset quality and profitability in recent years.

Its gross NPA ratio fell from 31.78% in September 2018 to 2.32% in March 2026. Its net NPA ratio declined from 17.30% to 0.15% over the same period.

Financial Metric	Reported Figure
FY26 net profit	₹9,513 crore
Total business	₹6.27 lakh crore
Deposits	₹3.56 lakh crore
Net advances	₹2.72 lakh crore
Year-on-year total business growth	18%

Total business and deposit figures are reported as of September 30, where applicable.

What Should Investors Watch Next?

Investors should track:

• Regulatory approvals: Clearances required to complete the deal.
• Transaction timeline: Progress of the proposed stake sale.
• Asset quality: Whether the bank maintains its lower NPA ratios.
• Financial performance: Future profit, deposit and loan growth.
• Fairfax’s plans: Its strategy for the bank after the acquisition.

IDBI Bank Shares Fall 7%: Final Takeaway

IDBI Bank shares fell over 7% after a nearly 13% rally, as investors appeared to book profits following Cabinet approval of Fairfax’s proposed ₹52,878 crore acquisition.

The bank’s improving financial performance and the proposed ownership change remain important developments. However, the deal is still subject to regulatory approvals, and the stock’s future performance will depend on several factors.

Frequently Asked Questions

Why did IDBI Bank shares fall on October 15, 2026?

The shares fell over 7% after a nearly 13% rally in the previous session. Profit-booking was reported as a possible reason.

What is the value of the Fairfax deal?

The proposed transaction is valued at ₹52,878.08 crore for a 60.72% stake.

Is the Fairfax deal completed?

No. The transaction remains subject to required regulatory approvals.

How has IDBI Bank improved its asset quality?

Its gross NPA ratio fell to 2.32% in March 2026 from 31.78% in September 2018.