The country’s economy is facing a familiar challenge ~ the perennial struggle to meet divestment targets. The revelation that the Centre is set to miss its divestment goal by a staggering sum in the current fiscal year is a stark reminder of the persistent hurdles on the road to economic reform.
Share price of IDBI Bank ended nearly 10 per cent higher on Friday after the Reserve Bank of India removed the lender from its enhanced regulatory supervision or Prompt Corrective Action (PCA) framework after a gap of nearly four years.
Share of the lender started their trade on a positive note, and jumped 17.12 per cent to Rs 44.80 on BSE during the day.
At the end of the day’s trade, the stock closed at Rs 42, a gain of 9.80 per cent.
Similar trends were witnessed on the NSE, as the scrip closed at Rs 42, climbing 9.80 per cent. Earlier in the day, the shares rallied 17.64 per cent to Rs 45.
In volume terms, 115.74 lakh shares were traded on BSE and over 12 crore on NSE.
The Reserve Bank of India (RBI) had placed IDBI Bank under PCA framework in May 2017, after it had breached the thresholds for capital adequacy, asset quality (net NPAs was over 13 per cent in March 2017), return on assets and the leverage ratio.
The performance of IDBI Bank was reviewed by the Board for Financial Supervision (BFS) in its meeting held on February 18, 2021.
It was noted that as per published results for the quarter ending December 31, 2020, the bank is not in breach of the PCA parameters on regulatory capital, net NPA and leverage ratio, RBI had said on Wednesday.
The bank has also provided a written commitment that it would comply with the norms of minimum regulatory capital, net NPA and leverage ratio on an ongoing basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.
Equity markets were closed on Thursday for Mahashivratri.