Shares of IDBI Bank surged 10 percent intraday on September 25 and looked on course to extend their winning run into the fourth consecutive session.
The stock opened the session at Rs 33.75 on the BSE against the previous close at Rs 34.15 and touched the intraday high and low at Rs 37.55 and Rs 32.75, respectively.
The scrip is trading in the green amid reports that the bank is selling its loans.
According to a report in The Economic Times, “IDBI Bank has put up loans worth Rs 9,500 crore for sale, and the accounts offered to potential buyers include the KKR-backed JBF Petrochemicals and JBF Industries, and Anil Ambani’s Reliance Communications.”
The bank on September 19, approved the proposal for preferential issue of capital to the government and LIC aggregating up to Rs 4,557 crore and Rs 4,743 crore, respectively.
This was after the Union Cabinet approved the Rs 9,300 crore capital infusion plan.
As part of the recapitalization plan approved by the Union Cabinet, IDBI Bank will get Rs 4,557 crore from the government, and state-owned LIC will pump in an additional Rs 4,743 crore.
As of September 24 close, the stock has retreated 44 percent in Calendar 2019.
The scrip traded 7.91 percent up at Rs 36.85 on BSE around 1245 hours.
News Source : moneycontrol