IDBI Bank surges 8% after Cabinet approves Rs 9,000 cr capital infusion

Shares of IDBI Bank settled at Rs 28.80, up 7.66 percent, on BSE on September 3, buoyed by reports of capital infusion by the government and LIC.

CNBC TV18 reported that the Cabinet has approved plans to infuse over Rs 9,000 crore in IDBI Bank to raise capital adequacy ratio.

Of the Rs 9,300 crore needed, LIC would infuse Rs 4,743 crore and the government will infuse Rs 4,557 crore.

The bank was eyeing to raise capital from its majority shareholders–Life Insurance Corporation of India (which owns 51 percent stake) and the government of India (46 percent stake) before September 30, 2019, to meet capital requirements.

Shares of the company opened at the same level of the previous close at Rs 26.75 and touched intraday highs and lows of Rs 29.65 and Rs 26.05 on BSE in the trade so far.

On August 27, S&P Global Ratings placed its ‘BB’ long-term and ‘B’ short-term foreign currency issuer credit ratings on IDBI Bank on Credit Watch with negative implications.

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