IDBI Bank slips after RBI action

IDBI Bank fell 2.32% to Rs 80 at 10:29 IST on BSE after the Reserve Bank of India initiated prompt corrective action on the bank.

The announcement was made after market hours yesterday, 9 May 2017.

Meanwhile, the S&P BSE Sensex was up 239.74 points, or 0.80% to 30,172.99.

On the BSE, 3.44 lakh shares were traded in the counter so far, compared with average daily volumes of 5.53 lakh shares in the past one quarter. The stock had hit a high of Rs 80.85 and a low of Rs 79.10 so far during the day. The stock hit a 52-week high of Rs 86.50 on 6 February 2017. The stock hit a 52-week low of Rs 62.95 on 9 November 2016.

The stock had outperformed the market over the past one month till 9 May 2017, rising 9.05% compared with 1.21% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 0.85% as against Sensex's 5.81% rise.

The large-cap company has equity capital of Rs 2058.82 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI), vide their letter dated 5 May 2017, initiated prompt corrective action for IDBI Bank in view of high net non-performing assets (NPA) and negative return on assets (ROA). This action will not have any material impact on the performance of the bank and will contribute to improving the internal controls of the bank and improvement in its activities, IDBI Bank said in a statement.

IDBI Bank reported net loss of Rs 2254.96 crore in Q3 December 2017, higher than net loss of Rs 2183.68 crore in Q3 December 2016. Operating income fell 3.5% to Rs 7104.21 crore in Q3 December 2016 over Q3 December 2015.

Government of India holds 73.98% stake in IDBI Bank (as on 31 March 2017).

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