The trading volumes on the counter more than doubled with a combined 37.26 million shares changed hands on the BSE and NSE till 03:00 pm.
The media report suggested that the government is in early stages of negotiation with a Singapore-based private equity player to sell 10% stake in the IDBI Bank.
According to Business Standard
report, the government has made it clear that recapitalisation will be done alongside a “new wave” of banking reforms.
“Now is the best time to carry out the IDBI Bank stake sale. Other changes, including in boards and management of PSBs, will also be carried out soon,” the report adding quoting official.
Last month, Finance Minister Arun Jaitley had clarified that the government’s decision to privatise IDBI Bank remained unchanged and would be done at the right time. CLICK HERE TO READ FULL REPORT
Earlier this month, CRISIL has vide email dated February 06, 2018 revised its outlook on the Tier II bonds (under Basel III), Infrastructure bonds, Lower Tier II bonds (under Basel II), Omni bonds, Flexi bonds, Upper Tier II bonds (under Basel II), Tier I Perpetual bonds (under Basel II) and the Fixed deposit programme of to 'Stable' from 'Negative', while reaffirming the ratings at 'CRISIL A+/CRISIL A/FAA'.
CRISIL believes the government’s recapitalization plans will improve the financial risk profile of IDBI Bank, help in meeting Basel III regulatory capital norms, and provide a cushion against expected rise in provisioning for non-performing assets (NPAs).
Additionally, CRISIL believes that asset quality issues are peaking with incremental slippages to NPAs expected to taper in fiscal 2018 and 2019. This coupled with likely revival of credit growth in medium term will support IDBI Bank's performance.
The ratings continue to factor in CRISIL's belief that IDBI Bank will continue to receive support from its majority owner, Government of India, both on an ongoing basis and in times of distress, as well as the bank' established market position, it added.