IDBI Bank in trade on July 2, 2020 entered the Rs. 50000 crore market-cap club after the lender hit 52-week high price of Rs. 48.20 apiece on the BSE. Since March lows of Rs. 17.25, the stock has rebounded by a massive 181%. The counter was locked in the upper circuit for the seventh successive day.
On sharp rally in the bank's stock price, market capitalization rose to Rs. 50,034 crore.
And as per the BSE data, IDBI Bank holds 54th rank in the overall m-cap ranking of listed companies. As of now, IDBI Bank leads some of the banking entities including the likes of PNB with a market cap of Rs. 34,301 crore, IndusInd Bank with m-cap of Rs. 34,869 crore and Yes Bank with a m-cap of Rs. 33510 crore.
In another development, the bank on June 27 said that its board has given the approval for divesting 27% holding in IDBI Federal Life Insurance for a financial consideration of Rs. 595 crore. The JV insurance firm started its venture in 2008 and IDBI Bank has a 48% stake while the remaining share is held by Federal Bank and its Dutch associate Ageas Insurance International NV, sharing 26 per cent stake each.
IDBI Bank for the fourth quarter ended March of FY20 reported profit for the first time after posting loss for last 13 quarters. The profit before tax at the bank stood at Rs. 289.66 crore on the back of healthy gains in net interest income (NII) and a sharp decline in contingencies and provisions. It is worth mentioning that the bank is currently placed under RBI's Prompt Corrective Action (PCA).
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