The scrip surged as much as 15 per cent to Rs 43.50 in early deals on Thursday. However, it gave up some gains to trade at Rs 40.70.
IDBI Bank turned profitable in the fiscal year ended March after five years, posting a net profit of Rs 1,359 crore for the year. For 2019-20, the lender had posted a net loss of Rs 12,887 crore.
The lender came out of the RBI’s prompt corrective action (PCA) framework in March this year.
For the last quarter of the fiscal year 2020-21, the bank reported a nearly four-fold jump in net profit to Rs 512 crore. It had posted a profit of Rs 135 crore for the corresponding quarter a year ago.
The All India Bank Employees’ Association (AIBEA) opposed the government’s decision to privatise IDBI Bank. Terming it as a “retrograde” move, the association said the government should control a minimum of 51 per cent of the bank’s share capital.
The Government of India holds an over 41 per cent stake in IDBI Bank, whereas 54.70 per cent interest lies with Life Insurance Corporation of India.
IDBI Bank shares are still about 30 per cent below their 52-week high, touched in July last year. The state-owned lender delivered a return of over 190 per cent between May 2020 and July 2020, and has been rangebound since then.
