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Business Standard
5 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.
Time of India
02-06-2025
- Business
- Time of India
Centre seeks bigger, more frequent dividends from state-run companies
(You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Indian government is asking state-run companies to increase dividend payouts by about 25% this financial year as Asia's third-largest economy seeks to bolster finances in a volatile global environment, according to people with knowledge of the from the Department of Investment and Public Asset Management are also meeting company executives to request that that these payments be made quarterly rather than annually, the people said, asking not to be identified as the information isn't public. The government wants to garner about Rs 90,000 ($10.5 billion) through dividends in the year through March 2026, the people added, compared with Rs 74,020 crore received in the previous finance ministry didn't immediately respond to an email seeking Minister Narendra Modi's government announced tax cuts for the middle class in his latest budget and will now depend on higher dividend payouts to meet its 4.4% deficit target. It has already gotten help from a record Rs 2.69 lakh crore transfer from the central bank.
The Hindu
30-05-2025
- Business
- The Hindu
Govt. meets 4.8% fiscal deficit target for 2024-25
The Government of India has met its fiscal deficit target of 4.8% of GDP in 2024-25 though its total receipts came in slightly lower than what it had expected, according to data released by the Controller General of Accounts on Friday. The Centre's total revenue — counting tax, non-tax, and capital receipts — came in at ₹30.78 lakh crore in 2024-25 or 97.8% of its revised estimates for the year. Total expenditure stood at ₹46.55 lakh crore, also 97.8% of the estimates. The fiscal deficit, the difference between total expenditure and total revenue, at ₹15.77 lakh crore, stood at 4.8% of GDP based on the latest provisional estimates of GDP for the year released separately on Friday. As part of the government's fiscal consolidation glide path, Finance Minister Nirmala Sitharaman had, in her Budget speech in February, targeted a fiscal deficit of 4.4% of GDP in the current financial year 2025-26. Digging deeper, the data shows that total revenue fell short of the revised estimates due in large part to a shortfall in miscellaneous capital receipts, a Budget head that includes disinvestment proceeds. Compounding this was a minor shortfall in tax revenue. The government earned ₹17,202 crore as miscellaneous capital receipts which was just 52.1% of its revised projections for the year. Data from the Department of Investment and Public Asset Management showed that the government earned ₹10,131.32 crore from disinvestments in 2024-25. Net tax receipts stood at ₹24.99 lakh crore in 2024-25, 97.7% of what the government expected. Notably, the provisional data shows that corporate tax collections beat the government's estimate, while income tax collections fell short. Corporate tax collections stood at ₹9.87 lakh crore in 2024-25, 0.7% higher than the revised estimates for the year. Income tax collections, on the other hand, at ₹11.83 lakh crore, were nearly 6% lower than estimates. On the expenditure side, capital expenditure, which is the money spent on asset creation, stood at ₹10.52 lakh crore, at 103.3% of the government's estimate for the year. Revenue expenditure, which includes salaries, pensions, interest payments, and subsidies, stood at ₹36.03 lakh crore, about 2.5% lower than estimated.
