IDBI Bank slips after S&P downgrade

IDBI Bank fell 1.16% to Rs 64.05 at 11:21 IST on BSE after global ratings firm Standard & Poor's downgraded its rating on the bank to below investment grade citing expectations for weaker asset quality.

Meanwhile, the BSE Sensex was down 83.08 points, or 0.40%, to 20,522.

On BSE, 66,000 shares were traded in the counter compared with average volume of 3.54 lakh shares in the past one quarter.

Trading was quite volatile in the counter. The stock fell 0.23% at the day's a high of Rs 64.65 so far during the day. It fell 1.77% at the day's low of Rs 63.65 so far during the day.

The stock hit a 52-week high of Rs 118.20 on 9 January 2013. The stock hit a 52-week low of Rs 52.30 on 4 September 2013.

The stock had underperformed the market over the past one month till 25 November 2013, sliding 2.56% compared with the Sensex's 0.38% fall. The scrip had, however, underperformed the market in past one quarter, rising 11.92% as against Sensex's 11.26% rise.

The mid-cap company has an equity capital of Rs 1332.77 crore. Face value per share is Rs 10.

Rating agency Standard & Poor's (S&P) lowered foreign currency issuer credit rating on IDBI Bank to 'BB+/B' from 'BBB-/A-3', as IDBI Bank's asset quality is expected to remain weak through the next 12-18 months.

S&P said the outlook on the bank's long-term rating was negative.

Net profit of IDBI Bank declined 60.24% to Rs 192.27 crore on 3.4% rise in operating income to Rs 7114.44 crore in Q2 September 2013 over Q2 September 2012.

The Government of India (GoI) holds 71.72% stake in IDBI Bank (as per the shareholding pattern as on 30 September 2013).

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