The shares of one of India’s largest commercial banks fell by 4 percent on Wednesday’s early trade after the Indian government canceled a bid to appoint an asset valuer for divestment of stake.
At 11:48 a.m., IDBI Bank Ltd shares were trading at Rs 60.50 per share, down 2.97 percent from the previous close price. The company has a market capitalization of Rs 64,998 crore.
As per the reports, The Indian government on Tuesday canceled the bid process for the appointment of an asset valuer for the strategic sale-bound of IDBI Bank. It is expected that the government and the Life Insurance Corporation (LIC) planned their stakes in the bank.
Request For Proposal (RFP) was canceled because only one bid was received as per the report, A fresh Request For Proposal is to be invited soon by the government after a review of some of the bid criteria to enable better interest from bidders.
According to a CNBC TV 18 report, The central government holds a 45.48% stake in IDBI Bank and plans to sell 30.48% of it. Apart from this, LIC also holds a 49.24% stake in the bank, LIC is also planning to sell about a 30.24% stake in the bank. Both promoters have decided to sell a 60.7 percent combined stake in the bank.
In the last six months, the IDBI bank shares have given a 10 percent return and 24 percent in a year.
Looking at IDBI Bank financials, the company’s interest earned has increased by 21 percent yearly, from Rs 4,993 crore in Q2FY23 to Rs 6,038 crore in Q2FY24. During the same period, net profit also increased by 82 percent from Rs 767 crore to Rs 1,393 crore.
Based on the latest shareholding pattern, the company promoter holds a 94.71 percent stake in the company and retail investors hold a 4.62 percent stake in the company.
IDBI Bank is engaged in the business of retail banking, the company provides a wide range of products and services like deposits, loans, NRI services, demat, pension accounts, mobile banking, internet banking, investment schemes such as mutual funds, insurance products, bonds, debentures, etc.
Written by Omkar Chitnis
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