IDBI Bank share rises 8% as govt may sell 45% stake in lender
Share of IDBI Bank touched an intraday high of Rs 36.5, rising 7.99% against the previous close on BSE.
- Apr 13, 2021,
- Updated Apr 13, 2021 1:40 PM IST
IDBI Bank share rose 8% today on report that Union Cabinet would consider a proposal to divest the government's 45.5 percent stake in the lender. The Life Insurance Corporation of India (LIC), which holds 49.2 percent in IDBI Bank, will also be consulted before the stake sale process.
Buoyed by the stake sale report, share of IDBI Bank touched an intraday high of Rs 36.5, rising 7.99% against the previous close on BSE. The stock has gained after 6 days of consecutive fall. The share trades higher than 50 day and 100 day moving averages but lower than 5 day, 20 day and 200 day moving averages. The stock has gained 72.29% in one year and risen 15% since the beginning of this year.
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Market cap of the lender rose to Rs 38,171 crore. According to a report in Business Standard , the cabinet approval will give the Department of Investment and Public Asset Management (DIPAM) the authority to move ahead with the divestment process.
"DIPAM cannot move forward with the divestment process until approval from the cabinet is received, given that banks come under work allocation of the DFS. After the cabinet's approval, intermediaries can be appointed," the business news daily quoted an official as saying. The government's plan to sell its holding in the lender was delayed due to the COVID-19 pandemic, the report added.
In March this year, Reserve Bank of India (RBI) removed the lender from the prompt corrective action framework, subject to certain conditions and continuous monitoring.
On March 12, share of IDBI Bank opened 17 per cent higher at Rs 44.80 on the Bombay Stock Exchange after the apex bank's removed lender from PCA framework. IDBI Bank was removed from the RBI's prompt corrective action (PCA) framework on March 10 after a gap of nearly four years on improved financial performance.
"Taking all the above into consideration, it has been decided that IDBI Bank Limited be taken out of the PCA framework, subject to certain conditions and continuous monitoring," the RBI said.
LIC-owned IDBI Bank was placed under prompt corrective action (PCA) framework in May 2017 after it had breached the threshold for capital adequacy, asset quality (net NPAs was over 13 per cent in March 2017), return on assets and the leverage ratio.
IDBI Bank share rose 8% today on report that Union Cabinet would consider a proposal to divest the government's 45.5 percent stake in the lender. The Life Insurance Corporation of India (LIC), which holds 49.2 percent in IDBI Bank, will also be consulted before the stake sale process.
Buoyed by the stake sale report, share of IDBI Bank touched an intraday high of Rs 36.5, rising 7.99% against the previous close on BSE. The stock has gained after 6 days of consecutive fall. The share trades higher than 50 day and 100 day moving averages but lower than 5 day, 20 day and 200 day moving averages. The stock has gained 72.29% in one year and risen 15% since the beginning of this year.
Adani Ports share slips 5% after firm removed from S&P index
Market cap of the lender rose to Rs 38,171 crore. According to a report in Business Standard , the cabinet approval will give the Department of Investment and Public Asset Management (DIPAM) the authority to move ahead with the divestment process.
"DIPAM cannot move forward with the divestment process until approval from the cabinet is received, given that banks come under work allocation of the DFS. After the cabinet's approval, intermediaries can be appointed," the business news daily quoted an official as saying. The government's plan to sell its holding in the lender was delayed due to the COVID-19 pandemic, the report added.
In March this year, Reserve Bank of India (RBI) removed the lender from the prompt corrective action framework, subject to certain conditions and continuous monitoring.
On March 12, share of IDBI Bank opened 17 per cent higher at Rs 44.80 on the Bombay Stock Exchange after the apex bank's removed lender from PCA framework. IDBI Bank was removed from the RBI's prompt corrective action (PCA) framework on March 10 after a gap of nearly four years on improved financial performance.
"Taking all the above into consideration, it has been decided that IDBI Bank Limited be taken out of the PCA framework, subject to certain conditions and continuous monitoring," the RBI said.
LIC-owned IDBI Bank was placed under prompt corrective action (PCA) framework in May 2017 after it had breached the threshold for capital adequacy, asset quality (net NPAs was over 13 per cent in March 2017), return on assets and the leverage ratio.