IDBI Bank nears 52-week high; zooms 99% in 6 days on Rs 135 cr profit in Q4

Topics IDBI Bank | Buzzing stocks | Markets

IDBI Bank has now become the sixth most valuable Indian listed bank with a market capitalsiation of Rs 41,834 crore
Shares of IDBI Bank were locked in the upper circuit of 5 per cent at Rs 40.30 on the BSE on Monday, and were trading higher for the sixth day, after the bank reported robust earnings for the quarter ended March 2020 (Q4FY20).

The stock of the private sector lender was trading close to its 52-week high of Rs 40.90 touched on November 25, 2019. Till 09:41 am, a combined 3.2 million equity shares changed hands and there were pending buy orders for around 1.04 million shares on the NSE and BSE, the exchanges data show.

IDBI Bank has seen its market price nearly double or soar 99 per cent from Rs 20.30 hit on May 29 in the past six trading days after it earned a profit after tax (PAT) of Rs 135 crore for the March quarter (Q4FY20) after incurring losses for the past 13 quarters. It had posted a net loss of Rs 4,918 crore in the corresponding period of last year.

Reacting to the sharp rally in the stock price, IDBI Bank said that the movement in share price of the bank is the outcome of the aforesaid positive features of the financial results filed with the stock exchanges.

On May 30, the bank posted a profit before tax (PBT) of Rs 290 crore in Q4FY20 on healthy rise in net interest income and a sharp drop in provisions and contingencies. It had posted a loss before tax of Rs 7,136 crore in the quarter ended March 2019 (Q4FY19).

The asset quality of bank, which is under Prompt Corrective Action (PCA), showed an improvement in slippage during the fourth quarter of FY20. The gross non-performing Assets (GNPAs) stood at 27.53 per cent in Q4FY20, as against 27.47 per cent in Q4FY19. Net NPAs stood at 4.19 per cent, as against 10.11 per cent in the year-ago quarter. The bank said it has achieved all PCA parameters for exit except return on asset.

IDBI Bank has now become the sixth most valuable Indian listed bank with a market capitalsiation of Rs 41,834 crore, the BSE data shows. The lender has surpassed Bandhan Bank, YES Bank, Punjab National Bank and IndusInd Bank in the past six trading days.

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