Finance Minister Nirmala Sitharaman said on Saturday the government would sell its entire stake in IDBI Bank to private players.

After the announcement, shares of IDBI Bank surged over 12 per cent to Rs 38.25, gain of 4.20 per share. It was trading at Rs 38.30 per share at 2.17 p.m. on Saturday.

The government, a promoter, holds around 46.5 per cent stake in IDBI Bank, and is classified as a private bank following LIC’s acquisition.

In September, Life Insurance Corporation (LIC) of India and the Government together infused Rs 9,300 crore as equity capital into the bank.

State-owned LIC, which is the promoter of the debt-ridden lender with 51 per cent stake, will pump in an additional Rs 4,743 crore to improve the bank’s capital position.