Finance Minister Nirmala Sitharaman said on Saturday the government would sell its entire stake in IDBI Bank to private players.Also Read - 'Union Budget 2020 Has Measures to Push Employment, Economy,’ Says PM Modi

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. Also Read - Major Tax Relief For Middle Class: Union Budget 2020 Reduces Income Tax Rates

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. Also Read - Union Budget 2020: Rs. 22,000 Crore Outlay For Power, Renewable Energy Sector in FY21, Finance Minister

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.