IDBI Bank shares tank over 12 pc after Q1 earnings
Business | August 16, 2019 12:53 ISTShares of IDBI Bank tumbled over 12 per cent on Friday after the company reported widening of loss to Rs 3,800.84 crore for the June quarter.
Shares of IDBI Bank tumbled over 12 per cent on Friday after the company reported widening of loss to Rs 3,800.84 crore for the June quarter.
The Reserve Bank of India (RBI) has turned down IDBI Bank's proposal to change its name following the transfer of controlling 51 per cent stake to insurance behemoth LIC from the government of India.
The deal is expected to provide business synergies to it despite the lender's stressed balance sheet and high NPA.
The agency said it has issued a provisional order for attachment of assets under the Prevention of Money Laundering Act (PMLA) against Siva Group of Companies and Axcel Sunshine Limited located in the British Virgin Islands in the Caribbean.
The board of directors have approved the proposal for seeking shareholders' approval through postal ballot for the preferential issue of equity capital to Life Insurance Corporation of India (LIC) aggregating up to 14.90 per cent of the bank's post issue paid up capital, IDBI Bank said in a filing to stock exchanges.
If the LIC becomes a major stakeholder in IDBI Bank, it could be beneficial for both state-owned financial players in the long run.
The media reports also said the government had sought the views of insurance regulator IRDAI and markets watchdog Sebi on the move. IRDAI does not allow LIC or any other insurer to own more than 15 per cent in any company.
IDBI Bank’s gross NPA soared to 27.95% of its loans at March 2018-end compared to 21.25% at the end of March 2017. Similarly, the net NPAs were 16.69% compared to 13.21%.
According to officials, the agency has searched 50 locations, including residences of former senior IDBI bank officials in the loan default case.
The bank revealed that some of these loans were issued during fiscal years 2009-2013 for fish farming businesses and they were obtained against fake lease documents of non-existent fish ponds and by inflating the value of collateral.
The issue of wage revision at IDBI Bank, pending since Nov 2012, was discussed at a joint meeting of unions which decided on the all-India strike in December.
The Supreme Court on Tuesday agreed to hear IDBI Bank’s plea seeking modification of its order staying insolvency proceedings against embattled real estate firm Jaypee Infratech on September 11
In case of net NPAs by this period, the divergence is of Rs 4,755.60 crore. The lender had reported net NPAs worth Rs 14,643.39 crore as against RBI’s estimate of Rs 19,398.99 crore.
In an important revelation regarding the loan default case, the ED today said that the two initial tranches of loan worth Rs 350 crore were hastily disbursed by IDBI bank to Kingfisher Airlines after a
State-owned IDBI Bank announced a cut in its marginal cost of fund-based lending rate (MCLR) by 30-60 basis points (bps) effective January 1, 2017.
Two internal notes by the IDBI Bank, which lent Rs 900 crore to beleaguered liquor baron Vijay Mallya in March 2009, indicate a marked difference in the bank’s stance on the grant of loan.
Guwahati:IDBI Bank's officers in North East on Saturday announced to hold a protest march-cum-road show on Sunday against the Centre's proposal in the Budget to dilute government's stake in it to below 50%. "Against the
Liquor baron Vijay Mallya today wrote to the Enforcement Directorate (ED) requesting him for extension of time till early April to appear before agency investigators.
New Delhi: In a move that could spell more trouble for beleagured liquor baron Vijay Mallya, the Enforcement Directorate(ED) today registered a frrsh money laundering case against him based on an FIR filed by the
New Delhi: Kingfisher Airlines had allegedly diverted a substantial chunk of Rs 4,000 crore in loans secured from public sector banks to tax havens which has now come under the scanner of the CBI that
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