IDBI Bank surges 10% after Cabinet approves Rs 9,257 crore capital infusion

Shares of IDBI Bank surged 10 per cent to Rs 29.65 per share intra-day on Tuesday after Union Cabinet approved one-time infusion of fresh capital to the tune of Rs 9,257 crore by both Government and Life Insurance Corporation (LIC). 

Of the above amount, Rs 4,700 crore will be infused by LIC and Rs 4,557 crore will be infused by the government. The bank was in talks with investors, including LIC, to raise Rs 10,000 crore capital by the end of second quarter to meet minimum regulatory requirements.

At 2:50 pm, IDBI Bank was trading 8.79 per cent higher at