IDBI Bank's share price climbed 6 percent intraday on Monday after the private bank signed a share purchase agreement (SPA) with Muthoot Finance to sell its stake in IDBI Asset Management Limited (IAML).

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At 9:38 am, the shares were trading 0.4 percent higher at Rs 38.85 per share on the NSE while intraday, the stock price climbed 5.9 percent to Rs 41. Meanwhile, Muthoot Finance's shares fell 0.72 percent lower to Rs 679.75.

In its BSE regulatory filing, the bank said, "IDBI Bank has agreed to sell its (a) entire 66.67 percent equity shares in its subsidiary IAML, and (b) entire 100 percent equity shares in its subsidiary IDBI MF Trustee company to the buyer."

The transaction is expected to be completed by end of February 2020 subject to receipt of necessary regulatory approvals, it added.

IDBI MF (22 schemes) is one of the profit-making companies in the mutual fund space with assets under management (AUM) of approximately Rs 5,300 crore.

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