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NEW DELHI: Shares of IDBI Bank, the state-owned lender, climbed as much as 11.62 per cent on Friday amid reports that LIC has finalised the deal with the lender, which will eventually pave way for the infusion of Rs 13,000 crore in the bank.
Post this deal, the government's stake in IDBI Bank will fall below 51 per cent, the report added.
Insurance regulator IRDA (Insurance Regulatory and Development Authority) is likely to clear the proposal today, the report said.
The proposal is part of a plan to professionalise the state-owned lender using the Axis Bank model, which has been mooted for a long time.
One of the reasons why the government is looking at a state-owned investor is that the bank's valuation is distressed.
IDBI Bank posted a loss of Rs 5,662.76 crore for the quarter ended March 31.
It had posted a net loss of Rs 3,199.77 crore in the corresponding quarter last year.
Percentage of net NPA jumped to 16.69 per cent against 16.02 per cent on a quarter-on-quarter basis.
It was at 13.21 in Q4FY17.
Amount of gross non-performing assets jumped to Rs 55,588.26 crore against Rs 44,752.59 crore on year-on-year basis.
At 10:14 am, shares of IDBI Bank were trading at Rs 55.35 apiece on BSE, up 10.92 per cent.
