IDBI Bank’s share price jumped nearly 7% on Thursday following news that the Reserve Bank of India (RBI) issued a ‘fit and proper’ report on the bidders for the bank’s privatisation. The shares hit an intraday high of ₹94 apiece on the BSE with high trading volumes.
The RBI’s report, ahead of the Union Budget 2024-2025, ensures that the bidders meet the required criteria to move forward in the privatisation process, according to sources quoted by CNBC-Awaaz. Livemint could not verify this report.
IDBI Bank has been set for divestment for several years, with Life Insurance Corporation of India (LIC) holding over a 49% stake and the central government holding a 45.5% stake. The plan is to divest 60.7% of the bank, which includes 30.5% from the government and 30.2% from LIC.
In its first-quarter business update for FY25, IDBI Bank reported total deposits of ₹2,77,549 crore, up 13% from the previous year’s ₹2,44,936 crore. CASA deposits rose 5% year-on-year (YoY). Net advances in Q1FY25 increased by 17% to ₹1,94,014 crore from ₹1,65,403 crore YoY.
IDBI Bank will announce its Q1 results on July 22. The Board of Directors will meet on this date to consider and approve the unaudited financial results for the quarter ended June 30.
So far this year, IDBI Bank shares have rallied over 38%, and in the past year, they have risen by more than 62%. At 2:15 pm, the shares were trading 5.55% higher at ₹92.80 apiece on the BSE.
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