IDBI expects fresh capital infusion by government
29 December 2011
IDBI Bank, majority owned by the Government of India, today said the government was considering capital support to the bank.
''The government is actively considering the bank's request for capital support and intends to infuse capitals funds by way of preferential allotment of equity,'' IDBI Bank said in a filing with the Bombay Stock Exchange (BSE).
Last year, the government had agreed to infuse Rs3,119 crore capital into IDBI through the preferential equity route. The fresh capital infusion would take government stake in IDBI to 65.15 per cent from 52.6 per cent at present.
The government has already made a provision to infuse Rs6,000 crore in public sector banks in budget of the current fiscal.
The IDBI Bank stock lost 0.98 per cent in today's trading on the Bombay Stock Exchange hitting Rs80.50 after the bank said the government was actively considering the bank's request for capital support and intends to infuse capital funds into the bank by way of preferential allotment of equity.
On BSE, 3.29 lakh shares were traded in the counter as against average daily volume of 4.25 lakh shares in the past one quarter.