IDBI bank approves preferential issue to govt and LIC

IDBI bank approves preferential issue to govt and LIC

PTI File Photo

The board members of IDBI bank has approved the proposal of preferential issue to the government and LIC after their infusion of Rs 4,557 crore and Rs 4,743 crore, respectively, according to media reports. 

Union Minister Prakash Javedakar announced on September 3 that it will infuse Rs 9300 crore from LIC and government into IDBI bank to increase the lender’s capital base and increase the profit of the bank. 

Javedakar also claimed that doing so will help IDBI further raise its capital from its own and come out of the Prompt Corrective Action Framework of RBI. 

The share price of IDBI bank declined by 3 per cent, touching its intraday low at Rs 26.95 on September 19,  after the company approved the proposal, according to the report of Moneycontrol.

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