On Thursday, IDBI Bank announced that its board has approved to raise as much as Rs 6,000 crore from institutional investors.
In a stock exchange filing, the lender said: "in respect of the raising of funds through issue of equity shares through qualified institutions placement, we wish to inform you that the Board at its meeting held today i.e. October 29, 2020, has passed a resolution for approving the raising of funds for an amount not exceeding 6000 crore through issue of equity shares through qualified institutions placement subject to approvals of the regulatory and/or statutory authorities, as applicable."
The bank reported a net profit of Rs 324 crore for the September-ended quarter with the bank's total income falling 7.5 percent year-on-year to Rs 5,761.06 crore for the quarter under review. The bank's net interest income grew to Rs 1,695 crore during the reported quarter.
LIC held 51 percent share in IDBI Bank as on 30 June 2020, while the government's shareholding stood at 47.11 percent, as per BSE's data. Originally a public sector lender, IDBI Bank became a private sector firm post-acquisition by LIC in January 2019.
Shares of IDBI Bank closed 1.21 percent lower at Rs 36.80 on Thursday.