IDBI Bank Shares Jump 13% to ₹93.60, Market Cap Crosses ₹1 Lakh Crore as Fairfax Deal Nears
IDBI Bank shares rallied nearly 13% on Wednesday, October 14, 2026, adding more than ₹11,460 crore to the lender's market capitalisation while the broader market stayed muted. The stock jumped to ₹93.60 on NSE, its highest level in nearly two weeks, and market capitalisation crossed the ₹1 lakh crore mark.
Fairfax Stake Purchase
The shares had been range-bound recently even as the long-running privatisation process moved closer to conclusion. Fairfax is the frontrunner to acquire a combined stake of nearly 61% being sold by the government and Life Insurance Corporation (LIC). The government plans to sell 30.48% and LIC is looking to offload 30.24%.
Fairfax raised its offer to around ₹81 per share, valuing the stake at roughly ₹53,000 crore, or about $5.5 billion, according to a report cited earlier. That price was over 2% below the stock's previous close of ₹82.94 and is well under Wednesday's high of ₹93.60.
| Indicator | Reading | Change / Signal |
|---|---|---|
| Share price (intraday high) | ₹93.60 | Up nearly 13% |
| Previous close | ₹82.94 | Before the rally |
| Market value added | More than ₹11,460 crore | Crossed ₹1 lakh crore |
| Fairfax offer price | Around ₹81 per share | Over 2% below the previous close |
| Deal value | About ₹53,000 crore (about $5.5 billion) | Combined stake of nearly 61% |
Approvals and Open Offer
The deal requires Prem Watsa-owned Fairfax to make an open offer to public shareholders. The successful bidder must also pass a final assessment by the Reserve Bank of India under its fit and proper standards, and approvals are needed from statutory and regulatory authorities, including the Competition Commission of India. At about $5.5 billion, the transaction is likely to top Emirates NBD's $2.75 billion purchase of a 60% stake in RBL Bank in 2025 as the biggest foreign investment in an Indian bank.
IDBI Bank Q2 Business Update
Earlier this month, IDBI Bank released a provisional business update for July-September FY27.
| Metric | Q2 FY27 | Year-on-year change |
|---|---|---|
| Total business | ₹6.27 lakh crore | +18% |
| Total deposits | ₹3.56 lakh crore | +17% |
| CASA deposits | ₹1.56 lakh crore | +12% |
| Net advances | ₹2.72 lakh crore | +18% |
Market and Sector Impact
JM Financial noted that provisional updates from 30 banks show loan growth accelerating to 19% year on year and deposit growth to nearly 16%, helped by the FCNR-B mobilisation drive since June 2026. It expects net interest margins to contract 5-20 basis points quarter on quarter, mainly at private banks, because of FCNR-B inflows and muted CASA growth. It also sees treasury income under pressure from rising yields, operating expense growth of 7% against balance sheet growth of 20%, and credit costs at a benign 50 basis points.
What to Watch
Track the open offer to public shareholders, the RBI fit and proper assessment and CCI approval, and Q2 earnings metrics flagged by JM Financial: yields on FCNR deposits, the impact of a potential rate hike, the upcoming expected credit loss transition, and any stress in SME or unsecured loans.