IDBI Bank climbs on plan sell up to 49% stakes in 2 subsidiaries

IDBI Bank said it will sell up to 49% stake in its subsidiaries, IDBI Capital Markets & Securities and IDBI Intech.

The board of directors of IDBI Bank at its meeting held on Tuesday, 10 December 2019, gave in-principle approval to divest the bank's stake in its subsidiaries namely, IDBI Capital Market Securities (ICMS) and IDBI Intech (IIL), to the extent of 49% to the prospective investors and retaining controlling stake with the bank.

The scrip rose 1.49% to trade at Rs 34. It hovered in the range of Rs 33.80 and Rs 34.45 so far.

The stock fell 7.33% in four sessions to Rs 33.50 on Tuesday, from its recent closing high of Rs 36.15 on 4 December 2019.

On the technical front, the stock's RSI (relative strength index) stood at 47.23. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading above its 50-day moving average (DMA) placed at Rs 33 but was below its 200 DMA placed at Rs 35.51.

IDBI Bank reported a net loss of Rs 3,458.84 crore in Q2 September 2019, lower than net loss of Rs 3,602.49 crore during Q2 September 2018. Total income rose 1.11% to Rs 6,231.02 crore in Q2 September 2019 over Q2 September 2018.

IDBI Bank offers monetary intermediation of commercial banks, saving banks, postal savings bank and discount houses. The bank provides personalized banking and financial solutions to its clients. Its segments include wholesale banking, retail banking and treasury services.

Government of India holds 46.46% stake in IDBI Bank as on 30 September 2019.

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