IDBI Bank jumps 18.6% in three sessions

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IDBI Bank jumped 7.37% to Rs 79.35 at 15:25 IST on BSE with the stock extending recent rally triggered by media reports suggesting that the government has firmed up plans to bring down its holding in the bank to 49%.

Shares of IDBI Bank has jumped 18.6% in three sessions to current ruling price of Rs 79.35, from a recent low of Rs 66.90 on 22 September 2015.

Meanwhile, the S&P BSE Sensex was down 256.43 points or 0.99% at 25,607.07.

High volumes were witnessed on the counter. On BSE, so far 45.91 lakh shares were traded in the counter as against average daily volume of 6.79 lakh shares in the past one quarter.

The stock hit a high of Rs 80.90 and a low of Rs 74.55 so far during the day. The stock had hit a 52-week high of Rs 84.80 on 17 April 2015. The stock had hit a 52-week high of Rs 52.45 on 25 August 2015.

The stock had outperformed the market over the past one month till 24 September 2015, surging 29.31% compared with 0.47% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 17.3% as against Sensex's 6.73% fall.

The mid-cap bank has equity capital of Rs 1603.96 crore. Face value per share is Rs 10.

The stock had jumped 16.72% to Rs 69.45 in a single session on 21 September 2015 after finance minister Arun Jaitley reportedly in an interview to a media house suggested that the government may allow the lender to follow a model similar to that of Axis Bank. The government may consider reducing its holding in the bank, giving it more operational freedom, he reportedly added.

However, the stock dropped 3.67% to Rs 66.90 in a following session on 22 September 2015 after the bank in a notification to the stock exchanges on 22 September 2015, IDBI Bank said it had not received any communication from the government on the issue.

IDBI Bank's net profit rose 27.3% to Rs 135.18 crore on 9.3% growth in total income to Rs 7903.37 crore in Q1 June 2015 over Q1 June 2014.

The Government of India held 76.5% stake in IDBI Bank (as per the shareholding pattern as on 30 June 2015).

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