Shares in IDBI Bank have rallied almost 20% in trade on Monday (June 1, 2020) as the private lender has turned profitable.
This is owing to a write back of provision clause in the March ended quarter. Also other financial ratios as per the bank's claims have come in as healthy.
It is seen to swiftly move out of the RBI's corrective action(PCA)."Some other banks were brought out of PCA despite not making profits. We have now delivered on all parameters and are even profitable. It is only return on assets (RoA) where we have to improve. But we will write to RBI pleading our case to released from the PCA restrictions," said Suresh Khatanhar, deputy managing director at IDBI Bank.
Stock of IDBI Bank was last trading higher by 19.95% at Rs. 24.35 per share on the BSE.