IDBI Bank Surges On Buzz Of Government Stake Sale

Shares of state-run lender IDBI Bank rallied as much as 6 per cent to hit intraday high of Rs 71.20 on reports that International Finance Corporation (IFC), a lending arm of the World Bank, and TPG Capital are eyeing stake in the bank.

IFC, which is the one of the largest global development institution focused exclusively lending to the private sector in developing countries, has finished inspection of IDBI Bank's assets, reports said, adding that the World Bank arm is looking at 15 stake in the government-owned bank. 

Currently, government owns 80.16 per cent stake in the IDBI Bank.

TPG Capital a global private investment firm with assets worth $70.2 billion under management, is also in talks with the government to buy stake in IDBI Bank, reports said. 

In Budget speech, Finance Minister Arun Jaitley said that the government has started the process of transformation of IDBI Bank and will look at bringing down government's stake in the bank below 51 per cent.

Shares of IDBI Bank ended 4.5 per cent higher at Rs 70.20 outperforming the Sensex which closed 1.3 per cent higher.