Govt may restart IDBI Bank privatisation process from scratch: Report

The government is likely to restart the privatisation process of IDBI Bank from scratch after financial bids came in below the reserve price, leading to the exercise being called off last week, according to a report by The Economic Times.

The report added that a key panel of ministers overseeing the divestment process will soon be briefed on the developments and will take a final call.

Meanwhile, analysts remain cautiously optimistic on the stock, even as uncertainty around disinvestment continues to weigh. Key support is seen in the Rs 68–73 range, while immediate resistance is placed at Rs 78–82.

Kranthi Bathini, Equity Strategist at WealthMills Securities, said, "There is no clarity on disinvestment, which has been an overhang on the stock for quite some time. The bank has also missed disinvestment timelines in the recent past. With that being said, existing investors may consider continuing to hold the stock."

Ravi Singh, Chief Research Officer at Mastertrust, noted that the stock has declined sharply. He added that investors can consider buying, with a stop loss of Rs 68 and a near-term target of Rs 85.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "On the levels front, the Rs 70-68 zone is likely to act as sacrosanct support and might mitigate the downfall. It is advisable to maintain a cautious stance in the counter until the bearish gap placed at Rs 82-92 is filled on the higher end."

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, stated, "Support is seen at Rs 73, while resistance is placed at Rs 78. A decisive move above Rs 78 could push the stock towards Rs 80, with the expected short-term trading range pegged between Rs 73 and Rs 80."