IDBI Bank on Friday (27 March) said it has withdrawn its plans to raise Rs 1,000 crore capital through Basel-III compliant bonds.
IDBI Bank on 24 March 2020 announced plans to issue Basel III Compliant Tier 2 Bonds for aggregate total issue size of Rs 1000 crore, with a base size of Rs 500 crore and a Green Shoe option to retain oversubscription up to Rs 500 crore.However, due to the sudden RBI policy rate cut, CRR cut, liquidity support and other measures announced last week, interest rates fell significantly. Hence IDBI Bank decided to withdraw the bond issue.
The announcement was made after market hours on Friday, 27 March 2020.
On a standalone basis, IDBI Bank reported net loss of Rs 5,763.04 crore in Q3 December 2019 compared with net loss of Rs 4,185.48 crore in Q3 December 2018. Total income rose 0.40% to Rs 6,215.60 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.
The Government of India holds 47.11% stake in the IDBI Bank as on 31 December 2019.
Shares of IDBI Bank fell 3.05% to Rs 19.10. The stock hovered in the range of Rs 19.70 to Rs 18.75 in intraday.
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