IDBI Bank advances on bourses post fund raising plan

IDBI Bank on Wednesday informed the bourses that its board of directors has approved rupee bond borrowing limit of Rs 7,500 crore for FY 2020-21 to be borrowed in one or more tranches, comprising additional tier I bonds up to Rs 3,000 crore, Basel III tier 2 bonds up to Rs 3,500 crore and senior/infrastructure bonds up to Rs 1,000 crore by way of private placement.

Further, the bank’s board of directors has approved in principle a proposal to sell IDBI Bank's stake in IDBI Federal Life Insurance Company (IFLI) to the extent of 23-27 per cent. 

The board of directors at their meeting has approved the exercise of call option on the bank's perpetual tier 1 bond series I of Rs 245.10 crore due on June 22, 2020 subject to RBI approval.

In response to this development, the stock of IDBI Bank surged nearly 11 per cent on the bourses to touch an intraday high of Rs 21.95. At 11.51 am, the stock was trading at Rs 20.85 apiece, up by nearly five per cent from its previous close.