IDBI Bank has responded to BSE's clarification request regarding the significant surge in trading volumes of the bank's securities across exchanges. The bank confirmed compliance with regulatory disclosure requirements while reaffirming that the strategic disinvestment process remains under the Department of Investment and Public Asset Management (DIPAM).

BSE Clarification Response

In its official response dated January 5, 2026, IDBI Bank addressed BSE's inquiry about the recent volume spurt in the bank's shares. The bank stated that it has promptly informed stock exchanges of all material events and price-sensitive information as required under SEBI LODR Regulations.

The bank emphasized that there is no undisclosed or price-sensitive information requiring immediate disclosure to exchanges at this time. Company Secretary Jyothi Biju Nair signed the official communication, assuring continued compliance with all regulatory requirements.

Strong Q3 Business Performance

Despite recent market volatility, IDBI Bank's Q3 business update revealed impressive operational growth across multiple parameters. The bank achieved a significant milestone with total business reaching ₹5.50 lakh crore, representing a substantial 12.00% increase year-over-year.

The lending portfolio showed particularly strong momentum, with net advances surging by 15.00% to ₹2.30 lakh crore. Total deposits demonstrated steady growth of 9.00%, reaching ₹3.07 lakh crore, while CASA deposits grew by 4.00% to ₹1.40 lakh crore.

Ongoing Disinvestment Developments

The bank's response comes amid active developments in the disinvestment process. The Centre is expected to invite financial bids for the stake sale, with the government and Life Insurance Corporation jointly selling a 60.70% stake in the lender. The successful bidder announcement is anticipated by March-end.

Sources have indicated that Kotak Mahindra Bank remains a frontrunner for acquiring the government's stake, potentially through a part-cash and part-equity merger structure to manage the significant market capitalization involved.

IDBI Bank shares came under pressure on Monday, falling 3.60% intraday to hit a low of ₹110.70, despite the bank reporting strong business growth for Q3 FY26. The bank's total business reached ₹5.47 lakh crore as of December 31, 2025, representing a robust 12% year-on-year growth, driven by healthy performance across deposits and lending segments.

Key Financial Performance

The bank's provisional figures demonstrate strong operational momentum across all major business parameters:

Robust Credit Growth Drives Performance

The bank's lending portfolio showed particularly strong momentum, with net advances growing 15% year-on-year to ₹2.39 lakh crore. This significant increase from ₹2.07 lakh crore in the corresponding period reflects improved credit offtake and demand revival across various sectors. The lending growth outpaced overall business expansion, indicating the bank's successful focus on expanding its credit portfolio.

Deposit Base Expansion Continues

Total deposits reached ₹3.08 lakh crore, marking a 9% year-on-year increase from ₹2.82 lakh crore. The bank's CASA deposits, representing low-cost funding sources, stood at ₹1.36 lakh crore, showing a 4% year-on-year growth from ₹1.31 lakh crore. CASA deposits now constitute approximately 44% of total deposits, reflecting a healthy funding mix that supports the bank's profitability prospects.

Stock Performance Shows Mixed Signals

Despite the strong operational performance, IDBI Bank shares declined on Monday, contrasting with the bank's fundamental growth metrics. However, the stock has delivered impressive returns over longer periods, rising 44.36% over the past year and gaining 7.90% year-to-date. The stock has also advanced 10.68% over the last six months and registered a 20.92% gain over the past three months, with a 14.88% increase over the last month.

Regulatory Compliance and Outlook

The business update was filed in accordance with SEBI regulations, with the bank noting that December 31, 2025 figures remain provisional and subject to statutory auditor review. Detailed financial results for the quarter will be announced later, providing comprehensive insights into the bank's profitability and asset quality metrics. The consistent growth across key business parameters reflects IDBI Bank's operational efficiency and strategic execution in expanding its market presence.