LIC and GoI approve Rs 9,000 cr capital infusion in IDBI Bank

The Government of India has approved Rs. 9,000 crore capital infusion in IDBI Bank. Out of Rs 9,000 crore, the government will provide Rs 4,557 crore as one-time re-capitalisation of the bank, while Rs 4,743 crore will be infused by the LIC.

The Information and Broadcasting Minister Prakash Javadekar announced that the IDBI Bank expects to come out of the RBI’s Prompt Corrective Action framework next year.

IDBI Bank reported a loss of Rs. 3800.84 crore for the June quarter of FY20. Therefore, the government approved infusion of the funds in IDBI Bank to help improve the bank’s capital base and turn it profitable.

IDBI Bank is a commercial bank in India with operations driven by core banking IT platform. IDBI Bank offers banking and financial solutions to its clients in the retail and corporate banking arena through a nation-wide network of 1916 branches.

On Tuesday, the stock of IDBI Bank Ltd. opened at Rs. 26.75 and made an intra-day high and low of Rs. 29.65 and Rs. 26.05, respectively, on the BSE. The stock closed at Rs.28.80, up by 7.66 per cent