Selling stake ​ to institutions like IFC​ would be beneficial​: Kishore Kharat, IDBI Bank

If multilateral institutes like IFC takes interest in picking up stakes, its is good for the further development of the bank, said Kishore Kharat

IDBI Bank has experienced a boost in its shares after the government decided to reduce its holdings from 91% to 52%. With this reduction of holdings, the IDBI Bank will get more freedom and operational autonomy along with strength.

Kishore Kharat, MD & CEO, IDBI Bank, told CNBC TV18 that till now the bank has not received any direct proposal from the IFC but if multilateral institutes like IFC takes interest in picking up stakes, its is good for the further development of the bank.

On NPL, he said that all the assets are performing assets but some of them are treated as stressed assets due to regulatory prescriptions. Kharat is waiting for the economy to turn up along with the improved flow of cash. Around Rs.300-400 crore accounts have been already identified for ARCs, he added.

"We may have to bite the bullet one time either this quarter or the next quarter to clear our balance sheets as the deadline given by the RBI governor is March 2016 and with this we will certainly bounce back in the improved economy", said Khatar.

Stock View

IDBI Bank Ltd is currently trading at Rs. 90.15, up by Rs. 2.35 or 2.68% from its previous closing of Rs. 87.8 on the BSE.

The scrip opened at Rs. 88 and has touched a high and low of Rs. 91.4 and Rs. 87.9 respectively. So far 5081302(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 14082.76 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 95.7 on 03-Dec-2015 and a 52 week low of Rs. 52.45 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 93.15 and Rs. 86.55 respectively.

The promoters holding in the company stood at 76.5 % while Institutions and Non-Institutions held 13.88 % and 9.63 % respectively.

The stock is currently trading below its 50 DMA