IDBI Bank share price jumps 7% on RBI's ‘fit and proper’ report on bidders for privatisation

IDBI Bank share price jumped nearly 7% on Thursday amid reports that the banking regulator issued a ‘fit and proper’ report on bidders for the divestment of the bank. IDBI shares rallied as much as 6.91% to hit an intraday high of ₹94 apiece on the BSE with heavy volumes traded.

The Reserve Bank of India (RBI) has issued a 'fit and proper' report on bidders of IDBI Bank ahead of the Union Budget 2024-2025, fastening its divestment process, CNBC-Awaaz reported, quoting sources.

The RBI’s report ensures that the bidders meet the ‘fit and proper’ criteria and comply with regulations to proceed to the next stage of the privatisation process. Livemint was unable to verify the report.

IDBI Bank has been slated for divestment for several years. Life Insurance Corporation of India (LIC) is the largest shareholder in IDBI Bank with over 49% stake, while the central government holds a 45.5% stake in the lender.

IDBI Bank’s privatisation plan involves divesting 60.7% of the bank, which includes 30.5% stake of the government and LIC’s 30.2% stake.

In its business update for the first quarter of FY25, IDBI Bank reported total deposits of ₹2,77,549 crore, registering a growth of 13% from ₹2,44,936 crore in the year-ago quarter. CASA deposits rose 5% year-on-year (YoY).

The bank’s net advances in Q1FY25 increased 17% to ₹1,94,014 crore from ₹1,65,403 crore, YoY.

IDBI Bank will announce its Q1 results on July 22. The meeting of its Board of Directors of IDBI Bank will be held on Monday, July 22, to consider and approve the Un-audited Financial Results of the Bank for the quarter ended June 30, the PSU lender informed in a stock exchange filing.

IDBI share price has rallied more 38% so far this year and in the past one year, IDBI Bank shares have risen over 62%.

At 2:15 pm, IDBI Bank shares were trading 5.55% higher at ₹92.80 apiece on the BSE.