IDBI Bank surrenders early gains, ends flat

The stock ended flat at Rs 99. The counter clocked heavy trading volumes of over 5 million shares.
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(Updated at 1159 hrs)

IDBI Bank has rallied over 5% on government's decision to invest Rs 16,000 crore in 12 banks.

The stock opened 6% higher at Rs 105. It soon surged 10% to a high of Rs 109. The stock is now trading 4.5% higher at Rs 104 and has increased 51% in the last one month. The counter has clocked a hefty volume of 3.18 million shares as against its two-week daily traded average of 1.96 million.

The government is planning to infuse Rs 16,000 crore in more than 12 public sector banks, including IDBI Bank, by subscribing to equity shares through right issues. This will help bolster the bank's capital base. The banks would be able to meet their financial requirements through this.