Shares of IDBI Bank surged 15 per cent to Rs 43.50 on the BSE in the intra-day trade on Thursday after the Cabinet Committee on Economic Affairs gave its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank. At 09:21 am, the stock was trading 9 per cent higher at Rs 41.35 on the BSE on the back of heavy volumes. Around 2.7 million equity shares had changed hands on the BSE in the first few minutes of trade, as compared to an average 1.74 million shares traded in the past two weeks. In comparison, the S&P BSE Sensex was up 0.10 per cent at 48,728 points.
IDBI Bank s gross non-performing assets as a percentage of total advances came in at 22.37%.
Shares of the state-run lender IDBI Bank rose as much as 5 per cent to hit an intraday high of Rs 37.10 on the BSE after it reported March quarter earnings. IDBI Bank s net profit more than tripled to Rs 512 crore compared with Rs 135.39 crore during the same period last year. Massive jump in IDBI Bank s profit came on account of negative provisions worth Rs 1,119.65 crore for non-performing assets and improvement in operating profit, majorly driven by increase in non-interest income, the bank said in an investor presentation.