IDBI Bank jumped 4.53% to Rs 20.75 after the bank said its board approved a proposal to sell 23-27% stake in insurance arm IDBI Federal Life Insurance.
The board of directors, at its meeting held on Wednesday (8 April), has approved in principle the proposal to sell IDBI Bank's stake in IDBI Federal Life Insurance Company to the extent of 23-27%.IDBI Bank has 48% stake in the life insurance company while Federal Bank and Ageas Insurance own 26% each.
Meanwhile, the bank's board, at its meeting held on Wednesday, 8 April 2020, approved the exercise of call option on the bank's perpetual tier 1 bond series I of Rs 245.10 crore due on 22 June 2020 subject to RBI approval.
Further, the board also approved the rupee bond borrowing limit of Rs 7500 crore for FY 2020-21 to be borrowed in one or more tranches comprising of Additional Tier I Bonds up to 3000 crore, Basel III Tier 2 bonds up to 3500 crore and Senior/Infrastructure Bonds up to 1000 crore by way of private placement during FY 2020-21.
On a standalone basis, IDBI Bank reported net loss of Rs 5,728.70 crore in Q3 December 2019 compared with net loss of Rs 4,165.21 crore in Q3 December 2018. Total income rose 0.37% to Rs 6,267.23 crore in Q3 December 2019 over Q3 December 2018.
IDBI Bank offers a wide range of products from savings and current bank account to loans for retail and MSME customers or agri-loans to farmers.
Also Read
As on 31 December 2019, the Government of India helds 47.10% stake, while Life Insurance Corporation of India held 51% stake in the IDBI Bank.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content