HIKE IN IDBI SHARES

IDBI Bank shares jumped as much as 5.9 per cent to Rs 61.15, their biggest intraday percentage gain since June 7, on stake sale report.

The Government is considering to divest 40-43 per cent stake in IDBI Bank to Life Insurance Corporation of India, potentially yielding it Rs 10,000-11,000 crore, news agency NewsRise reports, citing an unnamed Finance Ministry official.

As per stock exchange data, the Government holds about 81 per cent stake in IDBI Bank, while LIC holds 10.8 per cent as on March 31.

The report said that the LIC board has approved the “initiative” to take stake in any bank. Spokesmen for IDBI Bank and the Finance Ministry said they have no immediate comment. LIC did not immediately respond to a request for comment.

More than 18.7 million IDBI Bank shares changed hands, compared with the 30-day average of 12.7 million shares.

The stock is the biggest percentage gainer on the Nifty PSU bank index, which was down 0.43 per cent as of 0502 GMT. The stock has fallen 3.5 per cent this year up to Thursday, compared with a 21.3 per cent decline in the Nifty PSU bank index.