 "IDBI Bank zooms 57% in 3 days post Q4 nos; m-cap surpasses IndusInd Bank")
Private lender IDBI Bank, on Wednesday, surpassed IndusInd Bank's market capitalisation to become the eighth most valued listed lender after an over 55 per cent rally in the past three trading days.
At 09:17 am, the lender's m-cap hit Rs 330 billion-mark, and was ahead of IndusInd Bank's m-cap of Rs 312 billion, the BSE data shows.
In the past three trading days, the stock of IDBI Bank has rallied 57 per cent to trade at Rs 31.80 level, up from Rs 20.30 hit on Friday, May 29. Turning the corner, IDBI Bank on Saturday posted a profit of Rs 135 crore for the March quarter (Q4FY20) on account of recoveries from bad loans. It had posted a net loss of Rs 4,918 crore in the corresponding period of last year.
ALSO READ: IDBI Bank turns profitable after 13 straight quarters of loss
The bank posted a profit before tax (PBT) of Rs 290 crore in Q4FY20 on a healthy rise in net interest income and a sharp drop in provisions and contingencies. It had posted a loss before tax of Rs 7,136 crore in the quarter ended March 2019 (Q4FY19).
The asset quality of bank, which is under Prompt Corrective Action (PCA), showed an improvement in slippage during the fourth quarter. The gross non-performing Assets (GNPAs) stood at 27.53 per cent in Q4FY20 as against 27.47 per cent in Q4FY19. Net NPAs stood at 4.19 per cent against 10.11 per cent in year ago quarter. The bank said it has achieved all PCA parameters for exit except return on asset.
Currently, Life Insurance Corporation of India (LIC) holds 51 per cent stake, while government through President of India holds 47.11 per cent stake in IDBI Bank. The public shareholding stands at 1.89 per cent, of which 1.37 per cent holding is with individual shareholders, while the remaining 0.52 per cent stake is with institutional investors and bodies corporate, shareholding pattern data shows.
ALSO READ: LIC listing, IDBI Bank stake sale may be postponed
Meanwhile, reports suggest listing of LIC and sale of government's stake in IDBI Bank may be delayed beyond March 2021 due to depressed valuation amid Covid-19 pandemic. The government aims to garner Rs 90,000 crore from the listing of LIC and stake dilution in IDBI Bank out of the total disinvestment target of Rs 2.10 trillion during the current fiscal.
Thus far in the financial year 2020-21 (FY21), the stock of IDBI Bank has outperformed the market by gaining 65 per cent, as compared to 28 per cent rise in the IndusInd Bank and 17 per cent rise in the S&P BSE Sensex.
At 09:17 am, the lender's m-cap hit Rs 330 billion-mark, and was ahead of IndusInd Bank's m-cap of Rs 312 billion, the BSE data shows.
In the past three trading days, the stock of IDBI Bank has rallied 57 per cent to trade at Rs 31.80 level, up from Rs 20.30 hit on Friday, May 29. Turning the corner, IDBI Bank on Saturday posted a profit of Rs 135 crore for the March quarter (Q4FY20) on account of recoveries from bad loans. It had posted a net loss of Rs 4,918 crore in the corresponding period of last year.
ALSO READ: IDBI Bank turns profitable after 13 straight quarters of loss
The bank posted a profit before tax (PBT) of Rs 290 crore in Q4FY20 on a healthy rise in net interest income and a sharp drop in provisions and contingencies. It had posted a loss before tax of Rs 7,136 crore in the quarter ended March 2019 (Q4FY19).
The asset quality of bank, which is under Prompt Corrective Action (PCA), showed an improvement in slippage during the fourth quarter. The gross non-performing Assets (GNPAs) stood at 27.53 per cent in Q4FY20 as against 27.47 per cent in Q4FY19. Net NPAs stood at 4.19 per cent against 10.11 per cent in year ago quarter. The bank said it has achieved all PCA parameters for exit except return on asset.
Currently, Life Insurance Corporation of India (LIC) holds 51 per cent stake, while government through President of India holds 47.11 per cent stake in IDBI Bank. The public shareholding stands at 1.89 per cent, of which 1.37 per cent holding is with individual shareholders, while the remaining 0.52 per cent stake is with institutional investors and bodies corporate, shareholding pattern data shows.
ALSO READ: LIC listing, IDBI Bank stake sale may be postponed
Meanwhile, reports suggest listing of LIC and sale of government's stake in IDBI Bank may be delayed beyond March 2021 due to depressed valuation amid Covid-19 pandemic. The government aims to garner Rs 90,000 crore from the listing of LIC and stake dilution in IDBI Bank out of the total disinvestment target of Rs 2.10 trillion during the current fiscal.
Thus far in the financial year 2020-21 (FY21), the stock of IDBI Bank has outperformed the market by gaining 65 per cent, as compared to 28 per cent rise in the IndusInd Bank and 17 per cent rise in the S&P BSE Sensex.
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