IDBI Share price: With this decision of the Reserve Bank, investors of IDBI Bank earned more than 4400 crores rupees in one day. The stock jumped 17 percent.
Today, IDBI Bank’s stock has seen a tremendous jump after the Reserve Bank exited Prompt Corrective Action. Its stock closed at Rs 38.25 on NSE on 10 March. This decision of RBI came on the same day. On March 11, the market was closed and when the market opened, IDBI Share opened at a level of Rs 45 with a gain of 17.60 per cent. At 12.15 in the afternoon, its stock was trading at a level of Rs 42.65 with a gain of 11.50 per cent.
With this decision of the Reserve Bank, IDBI Bank investors earned more than 4400 crores rupees in a day. The company’s market cap in the last trading session was Rs 41127 crore, which has increased to Rs 45697 crore today. In this way, investors have earned more than 4400 crores in one stroke. The Reserve Bank had put IDBI Bank under the PCA on May 2017. In March 2017, the NPA of the bank exceeded 13 per cent. The performance of IDBI Bank was reviewed at a meeting of the Financial Monitoring Board (BFS) on 18 February 2021.
The Reserve Bank takes such a decision to bail out the banks
Banks often get caught in financial crisis while doing business. From time to time, the RBI issues guidelines and frameworks to get them out of the crisis. ‘Prompt Corrective Action’ is a similar framework, which determines the financial health of a bank. This framework has been in operation since December 2002 with changes from time to time.
Bank came in profit in the third quarter
In the December quarter of the financial year 2020-21, the net profit of IDBI Bank owned by Life Insurance Corporation of India (LIC) was Rs 378 crores. The bank’s profit increased due to good increase in interest income. The bank had a loss of Rs 5,763 crore in the same period last year. Net interest income increased by 18 percent to Rs 1810 crore, compared to Rs 1532 crore in the same period last year. The gross NPA ratio of the bank fell from 28.72 per cent to 23.52 per cent in the third quarter.