Finance Ministry clarifies IDBI Bank divestment history amid ₹52,878-crore sale to Fairfax
IDBI Bank is in focus.
· Business Today Mkts
The ministry has said the legislative history of the IDBI (Repeal) Act, 2003, a Delhi High Court judgment and successive Union Budget speeches collectively demonstrated the evolution of the government's policy towards strategic disinvestment of the bank.
The analysis
IDBI Bank reported ₹52,878. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is +0.8% on the day at ₹84.12, and has returned -1.7% over three months. It sits 28% below its 52-week high, which means a good deal of bad news was already in the price. The banks sector has moved -3.1% over the same period, so IDBI Bank is running 1.4 points ahead of its peers.
For IDBI Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Market context
- The company directly in focus is IDBI.
- Sector exposure: Banks.
In this story
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