Shares of IDBI Bank on Tuesday jumped nearly 8 per cent after the government approved Rs 9,300 crore fund infusion in the company to help improve the bank's capital base and turn it profitable.
The scrip zoomed 7.66 per cent to close at Rs 28.80 on the BSE. During the day, it climbed 10.84 per cent to Rs 29.65.
At the NSE, shares jumped 5.78 per cent to close at Rs 28.35.
In terms of traded volume, 30.75 lakh shares were traded on the BSE and over two crore shares on the NSE during the day.
Briefing media about Cabinet decisions, Information and Broadcasting Minister Prakash Javadekar said it will help in completing the process of IDBI Bank's turnaround and enable it to return to profitability and normal lending, and giving the government the option of recovering its investment at an opportune time.
Of the Rs 9,300 crore needed, LIC would meet 51 per cent (Rs 4,743 crore), he said.
The remaining 49 per cent, amounting to Rs 4,557 crore, is proposed from the government as its share on one-time basis, he added.
The shareholding of the government was reduced to 46.46 per cent from 86 per cent while LIC stake in the bank increased to 51 per cent in January this year.
Disclaimer: No Business Standard Journalist was involved in creation of this content
