 "IDBI Bank share crosses Rs 100-mark after a gap of 10 years; Check details")
IDBI Bank share price BSE: Shares of IDBI Bank hit a record high of Rs 104.20, crossing Rs 100-mark after a gap of 10 years. IDBI Bank share price rallied 7 per cent on the BSE in Thursday's intraday trade amid heavy volumes in an otherwise weak market. Public shareholders hold 5.29 per cent stake in IDBI Bank.
In the past two months, the stock of IDBI Bank has zoomed 21 per cent. It is trading at its highest level since July 7, 2014. The stock of IDBI Bank had hit a record high of Rs 202.25 on November 11, 2010. However, the market capitalisation of IDBI Bank hit a record high of Rs 1.12 trillion today.
At 10:15 AM, IDBI Bank was trading 4 per cent higher at Rs 101.02, as compared to 0.54 per cent decline in the BSE Sensex. The average trading volumes on the counter nearly doubled, with a combined 82.06 million shares changing hands on the NSE and BSE.
At the end of the June quarter, the Government of India (45.48 per cent stake) and the state-owned Life Insurance Corporation of India (LIC) (49.24 per cent stake), together, held 94.71 per cent stake in IDBI Bank.
On October 7, 2022, the Centre invited expression of interest (EoIs) for IDBI Bank and offered to sell a total of 60.72 per cent stake in the bank, including 30.48 per cent from the government and 30.24 per cent from LIC, along with the transfer of management control in the bank.
The government received EoIs from multiple bidders on January 2, 2023. According to reports, at least four potential bidders had submitted their initial bid to acquire a majority stake in the bank. Once the Reserve Bank of India (RBI) clears it, the eligible bidders will do their due diligence on the bank.
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Now, according to a Business Standard report, the Centre is expecting the RBI's 'fit and proper' report on the potential bidders of the IDBI Bank by the end of this month.
The central bank is in the final leg of concluding its vetting process, which would help speed up the sale of the majority stake in the lender, the report said. READ HERE
IDBI Bank Q1FY25 results
IDBI Bank posted a 40 per cent year-on-year (Y-o-Y) growth in its net profit at Rs 1,719 crore for the first quarter ended June 2024 (Q1FY25) due to a sharp dip in provisions and taxes. The bank had posted a net profit of Rs 1,224 crore in the same quarter of FY24 (Q1FY24).
The provisions and taxes were down 80 per cent Y-o-Y to Rs 356 crore in Q1FY25 from Rs 1,795 crore in Q1FY24, the bank said in a statement.
Net interest income (NII), however, declined 19 per cent Y-o-Y to Rs 3,233 crore in Q1FY25, compared to Rs 3,998 crore in the same quarter a year ago. The first quarter of FY24 had one major interest recovery from non-performing assets (NPAs) to the tune of Rs 1,000 crore, IDBI Bank said in a statement.
Going forward, IDBI Bank intends to leverage its inherent strengths and competencies to capitalise on the emerging business opportunities to further augment its profitability.