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Business Standard
3 days ago
- Business
- Business Standard
What's driving IDBI Bank shares higher? Stock zooms 36% in 4 weeks
IDBI Bank share price today IDBI Bank shares gained 4 per cent today to hit a high of ₹104.40 on the BSE in Thursday's intraday trade amid heavy volumes. In the past two trading days, the stock price of the private sector lender has rallied 6 per cent. Further, in the past four weeks, it has zoomed 36 per cent. Currently, IDBI Bank is trading close to its 52-week high level of ₹107.98, which it had touched on July 29, 2024. It has bounced back 58 per cent from its March 2025 low of ₹66.14 on the BSE. At 09:59 AM, IDBI Bank share price was quoting 2 per cent higher at ₹102.45, as compared to 0.52 per cent rise in the BSE Sensex. The counter saw huge trading volumes today with 14.57 million shares, cumulatively, changing hands in the first 45 minutes of trading on the NSE and BSE. What's driving IDBI Bank stock price higher? The government has been working on the privatisation of IDBI Bank for over two and a half years. On October 07, 2022, the Department of Investment and Public Asset Management (DIPAM) released a Preliminary Information Memorandum and invited expression of interest (EOI) from interested parties for a stake sale of up to 60.72 per cent in IDBI Bank, including the stake of the Government of India (GoI) (30.24 per cent) as well as Life Insurance Corporation of India (LIC) (30.48 per cent). Even as the process to dilute their respective stakes in IDBI has progressed, the conclusion and eventual finalisation of new stakeholders is still awaited. According to a PTI report, DIPAM Secretary Arunish Chawla, in April, said the government has appointed asset valuers for valuation of IDBI Bank and is also deliberating the share purchase agreement to be signed with a prospective buyer. Meanwhile, according to a Reuters report, the Indian banking regulator is signalling possible rule changes ahead that would let foreigners own more of India's banks, spurred by overseas institutions' eagerness for acquisitions and the fast-growing economy's need for more long-term capita. IDBI Bank results For the January to March 2025 quarter (Q4FY25), IDBI Bank reported a 26 per cent year-on-year (Y-o-Y) increase in net profit at ₹2,051 crore, compared to ₹1,628 crore in Q4FY24. However, Net Interest Income (NII) declined by 11 per cent Y-o-Y to ₹3,290 crore from ₹3,688 crore last year. The bank showed improvements in asset quality with Gross Non-Performing Assets (GNPA) dropping to 2.98 per cent, down from 3.57 per cent in the December 2024 quarter (Q3FY25), while Net NPA declined to 0.15 per cent from 0.18 per cent. Apart from the steady growth in advances and the consequent improvement in its core income and profit, IDBI Bank continues to benefit from the recoveries from significantly provisioned stressed assets. The operating profitability is supported by strong recoveries from written-off accounts while credit and other provisions also remained low, supporting the overall profitability. The bank has a significant pool of highly provisioned stressed assets, which is likely to support its core profitability. "Though the capitalisation profile was supported by capital infusion in the past by LIC and the GoI, IDBI Bank has remained profitable since FY21. Notwithstanding the sufficient internal accruals and capital position for growth, the Reserve Bank of India's (RBI's) implementation of the expected credit loss (ECL) framework for credit exposures and additional provisioning on infrastructure financing remain monitorable," rating agency Icra said in January 2025. However, the strong capital cushions provide support for such transition(s). Although the ratings are based on IDBI's stand alone credit profile, any change in its parentage will be monitorable, it added. About IDBI Bank IDBI Bank, founded in 1964, is a private sector bank headquartered in Mumbai. It was a public sector bank till February 2019 with the GoI holding a majority stake. In January 2019, LIC increased its stake in the bank to 51 per cent by infusing capital of ₹21,624 crore, resulting in the dilution of the GoI's ownership to 46.46 per cent as on January 24, 2019 from 85.96 per cent. LIC maintained its holding at 51 per cent during the subsequent capital raise of ₹9,300 crore in September 2020, while the GoI's share remained at a similar level of 47.11 per cent. However, LIC and the GoI's stakes in the bank declined to 49.24 per cent and 45.48 per cent, respectively, after it raised capital via a qualified institutional placement (QIP) in FY2021. Given the decline in the GoI's majority shareholding, the Reserve Bank of India (RBI) classified IDBI as a private sector bank w.e.f. March 2019.
Business Standard
20-05-2025
- Business
- Business Standard
NLC India gains as Q4 PAT zooms 322% YoY to Rs 482 cr
NLC India rallied 3.91% to Rs 245.60 after its consolidated net profit zoomed 321.83% to Rs 481.96 crore on 8.34% increase in revenue from operations to Rs 3,836 crore in Q4 FY25 over Q4 FY24. Profit before tax spiked 451.37% to Rs 912.08 crore in Q4 FY25 as against Rs 165.42 crore in Q4 FY24. Total expenses added 7.79% year on year to Rs 3,600 crore in the quarter ended 31 March 2025. Employee benefits expense stood at Rs 1,093.59 (up 57.43%YoY), finance cost was at Rs 325.30 crore (up 63.36%) and cost of fuel consumed stood at Rs 514.07 crore (up 25.06% YoY) during the period under review. Revenue from Mining segment declined 8.22% to Rs 1,962.94 crore in Q4 FY25 as against Rs 2,138.87 crore in Q4 FY24. Revenue from Power Genartion segment rallied 9.49% to Rs 3,263.38 crore in Q4 FY25 from Rs 2,980.32 crore in Q4 FY24. Meanwhile, the board of directors has recommended a final dividend of Rs 1.50 per equity share) for the financial year 2024-25, subject to audit by the comptroller and auditor general of india (c&ag) and approval of the shareholders at the ensuing annual general meeting (AGM). The details regarding the Book Closure / Record Date for determining the entitlement of shareholders to the Final Dividend, and the date of payment/disptach of the said dividend, will be announced in due course upon finalization of the AGM date. Further, the company has approved the incorporation of a joint venture company with Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL), with equity participation in the ratio of 74:26 (company:RVUNL), for the purpose of establishing, maintaining, and operating a 3 x 125 MW Lignite-based Thermal Power Station. The Joint Venture will also develop and operate lignite mines to meet the fuel requirements of the proposed Thermal Power Plant. The incorporation is subject to compliance with DIPAM guidelines and receipt of necessary approvals from the Ministry of Coal (MoC) and other relevant departments, as applicable. NLC India is a 'Navratna' government of India company in the fossil fuel mining sector in India and thermal power generation. As of 31 March 2025, the Government of India held a 72.20% stake in the company.
Time of India
16-05-2025
- Business
- Time of India
BJP turning state into grazing ground for corporations: Cong
Raipur: Chhattisgarh Congress has alleged that the BJP govt focuses solely on exploiting Bastar's resources. The Congress party will soon launch a major public movement against the alleged loot of Bastar's wealth. "BJP govt has its eyes on Bastar's natural resources. CM Vishnu Deo Sai administration is turning the state into a grazing ground for corporate houses," stated Chhattisgarh Pradesh Congress Committee (CPCC) President Deepak Baij. He stated that four major iron ore mines in Bastar were handed over to private industrialists. Among them, the Bailadila 1A and 1B mines were leased to ArcelorMittal for 50 years. The Bailadila 1C mine was allotted to Rungta Steel for the same duration, and the Hahaladi mine in Kanker district was given to Sagar Stone for 50 years. Baij warned that this is just the beginning, and preparations are underway to hand over all of Bastar's precious mineral wealth to Adani. He alleged that a red carpet is being laid out in Bastar for Adani. Baij further alleged that instead of setting up mining-based public sector undertakings in Bastar, the BJP govt is handing over valuable mineral resources to capitalists at throwaway prices. He pointed out that despite widespread opposition, the Union Steel Minister recently visited Chhattisgarh and sold the Bhilai unit of the public sector enterprise Ferro Scrap Nigam Limited (FSNL) for Rs 320 crore, even though the unit was earning an annual profit of around Rs 100 crore. Baij also reminded that during the Raman Singh govt, Nagraz Hill in Bastar was sold to Adani with a fake Gram Sabha NOC. The previous Congress govt investigated and recommended cancellation of the allocation, but the proposal remains pending with the central govt. He added that the NMDC plant in Nagarnar, a public sector unit worth over Rs 20,000 crore, is listed for sale on the central govt's disinvestment portal "DIPAM. " He alleged that the central govt is selling off the right of Bastar's youth to govt employment. During elections, Prime Minister Modi and Union Home minister Amit Shah promised the people of Bastar that the Nagarnar plant would not be sold, yet the sale process continues, Baij further alleged.
Business Upturn
06-05-2025
- Business
- Business Upturn
TCIL raises transparency concerns in Bharti Hexacom–Indus Towers deal: Report
By Aditya Bhagchandani Published on May 6, 2025, 13:48 IST In a fresh development surrounding the Bharti Hexacom–Indus Towers tower transaction, CNBC-TV18 sources have reported that Telecommunications Consultants India Ltd (TCIL) has raised transparency concerns regarding the deal. The state-owned company, which holds a 15% stake in Bharti Hexacom, has reportedly questioned key aspects of the valuation and process, triggering uncertainty over the tower sale. According to CNBC sources, TCIL has flagged issues related to clarity and fairness in the proposed sale of 3,400 telecom towers by Bharti Hexacom to Indus Towers. The situation now awaits further management clarification, which will be critical to assess how the deal progresses. This comes weeks after the proposed sale — originally announced in February — was paused. The deal involved Bharti Airtel's plan to sell 12,700 towers and Bharti Hexacom's 3,400 towers to Indus Towers for a total consideration of Rs 3,308.7 crore. While Airtel's portion of the deal is moving ahead, Hexacom's sale remains on hold following TCIL's demand for a fresh valuation. Professional services firm Grant Thornton had pegged the valuation at Rs 33 lakh per tower. TCIL, however, has sought a new assessment that aligns with DIPAM and SEBI guidelines, possibly through an open bidding process to ensure transparency and fairness. Indus Towers, one of the largest telecom infrastructure providers in India, had 234,643 towers and 386,819 co-locations across the country as of December 2024. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
