IDBI Bank surges on the buzz of planning to raise up to $300 million

IDBI Bank is currently trading at Rs. 56.60, up by 0.50 points or 0.89% from its previous closing of Rs. 56.10 on the BSE. The scrip opened at Rs. 56.70 and has touched a high and low of Rs. 56.70 and Rs. 56.10 respectively. So far 44671 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 93.65 on 11-Mar-2013 and a 52 week low of Rs. 52.30 on 04-Sep-2013. Last one week high and low of the scrip stood at Rs. 57.40 and Rs. 55.50 respectively. The current market cap of the company is Rs. 9046.22 crore. The promoters holding in the company stood at 76.50% while Institutions and Non-Institutions held 14.04% and 9.46% respectively. IDBI Bank, the public sector lender is reportedly planning to raise up to $300 million through Basel-III-compliant bonds by the end of March 2014. Currently, the bank’s tier-I capital adequacy ratio slipping below 8% and to improve this ratio the bank is planning to issue bonds. The government has stipulated for public sector banks, tier-I capital adequacy should be at least 8%, while RBI has prescribed banks maintain overall cent capital adequacy of at least 9%. As on December 31, 2013, the bank’s Tier-I capital adequacy ratio was 7.93%, while overall capital adequacy stood at 12.71%. IDBI Bank is the youngest, new generation public sector universal bank that rides on a cutting edge Core Banking Information Technology platform. This enables the Bank to offer personalized banking and financial solutions to its clients through its 1,217 branches and 2,101 ATMs.