IDBI Bank to raise up to Rs2.500 crore

IDBI Bank to raise up to Rs2,500 crore through preferential issue of capital to government and other financial institutions


IDBI Bank posted a loss of Rs2,254.96 crore in the December quarter. Photo: Mint
IDBI Bank posted a loss of Rs2,254.96 crore in the December quarter. Photo: Mint

Mumbai: IDBI Bank on Tuesday said that it will raise up to Rs2,500 crore through preferential issue of capital to government of India (GoI) and other financial institutions.

The public sector lender has decided to freeze lending and branch expansion plans after massive third quarter loss, as reported by Economic Times on 27 February.

The bank posted a loss of Rs2,254.96 crore in the December quarter against Rs2,183.68 crore loss a year ago. The gross bad loan ratio at the bank jumped to 15.16% at the end of December quarter compared to 8.94% in the year ago period.

On Monday, the government directed Mahesh Kumar Jain, managing director and chief executive officer of Indian Bank to hold the same designation at IDBI Bank. While Kishor Kharat, chief executive officer of IDBI bank has been asked to join Indian Bank.

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