At a glance of IDBI Bank
Industrial Development Bank of India (IDBI Bank Limited) was established in 1964 by an Act to provide credit and other financial facilities for the development of the fledgling Indian industry. Initially it operated as a subsidiary of the Reserve Bank of India and later RBI transferred it to the Government of India. On 29 June 2018, Life Insurance Corporation of India has got a technical go-ahead from Insurance Regulatory and Development Authority of India to increase stake in IDBI Bank up to 51%.LIC completed acquisition of 51% controlling stake on 21 January 2019 making it the majority shareholder of the IDBI Bank. RBI has clarified vide a Press Release dated 14 March 2019, that IDBI Bank stands re-categorized as a Private Sector Bank for regulatory purposes with effect from 21 January 2019.The bank has an aggregate balance sheet size of ₹3.74 trillion as on 31 March 2016. It has 3,683 ATMs, 1,892 branches, including one overseas branch in Dubai, 58 e-lounges and 1,407 centers as of 1 February 2020.
In 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in India. IDBI provided financial assistance, both in rupee and foreign currencies, for green-field projects and also for expansion, modernization and diversification purposes. IN the wake of financial sector reforms unveiled by the government since 1992, IDBI also provided indirect financial assistance by way of refinancing of loans extended by State-level financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payment terms. After the public issue of IDBI in July 1995, the government shareholding in the bank came down from 100% to 75%.Many national institutes finds their roots in IDBI like SIDBI, India Exim Bank, National Stock Exchange of India and National Securities Depository Limited.
The Reserve Bank of India has removed the Quick Corrective Action PCA format imposed on private sector lender IDBI Bank after nearly 4 years. After the improvement in the financial position of IDBI Bank, it has been taken out of the purview of PCA.
The path has been cleared for the government to undertake strategic disinvestment of the bank. The government of the bank has a 45.48% stake and LIC holds a 49.24% stake. RBI has stated that the financial position of the bank has improved and the performance of RBI bank has been reviewed by the Board on Financials in February 2021 and it has found that in the results released by the bank in the December 2020 quarter, it has given regulatory capital, NPAs, have not violated PCA norms in leverage ratio. The bank has given assurance of following all the rules. It is noteworthy that IDBI bank put the bank in PCA in May 2017 after IDBI Bank violated capital adequacy limit and asset quality declined. IDBI Bank controlled by LIC had a loss of Rs 378 crores in the December quarter of 2020-21.
Mr.M.R.Kumar is the chairman and Mr.Rakesh Sharma is the Managing Director & CEO of the the IDBI Bank. Stock price on 10 March 2021 38.25, 52week High 55.75 and 52 week low 17.50.Listed category Group A.
(in Cr) Dec20 Sep20 FY 19-20
REVENUE 4563.98 4689.21 20,825.14
NET PROFIT 378.42 324.40 -12887.34
EPS 0.36 0.31 -14.48
CAR% .00 .00 0.00
NPS% 8.29 6.92 -61.88
Improvements in IDBI BANK activates are seen earlier. If the Govt. sells its stake in IDBI BANK the investors can get a good return in the future.
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