IDBI Bank gains 12% ahead of Irdai meeting

IDBI Bank has rallied 12% to Rs 55.85 on the BSE on  the back of heavy volumes ahead of the Insurance Regulatory and Development Authority of India (Irdai) meeting today to consider Life Insurance Corporation’s (LIC’s) proposal to pick up a substantial stake in the bank.

“The board of Irdai, which is meeting on Friday, may grant exemption to LIC from the rule that bars an insurer from holding more than 15% equity stake in any company, according to a government official. The insurance regulator might put some caveats and could ask India’s largest insurer to bring down its stake in IDBI Bank over a period of five-seven years,” the Business Standard reported. CLICK HERE TO READ FULL REPORT.

"It is hereby informed that no such discussion has taken place in the Board of IDBI Bank. In case such communication is received or such matter is discussed in the Board Meeting, the disclosure thereof will be made immediately to the Stock Exchanges," IDBI Bank said on news clarification on the article titled 'LIC plans Rs 130 billion capital injection in IDBI Bank.

IDBI Bank had underperformed the market by falling 41% from its recent high of Rs 84 on March 5, 2018, as compared to 3.8% rise in the S&P BSE Sensex till Thursday.

At 02:51 pm; the stock was trading 8% higher at Rs 53.90 on the BSE, against 0.93% rise in the benchmark index. The trading volumes on the counter jumped nearly three-fold with a combined 73.23 million shares changed hands on the BSE and NSE so far.