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  1. IDBI Bank shares tumble over 3% to nearly 1-month low as RBI smacks Rs 3 crore penalty on PSU bank

IDBI Bank shares tumble over 3% to nearly 1-month low as RBI smacks Rs 3 crore penalty on PSU bank

Shares of state-owned Mumbai-headquartered IDBI Bank tumbled more than 3% to nearly one-month low on Thursday after the Reserve Bank of India smacked Rs 3 crore penalty on the PSU bank.

By: | Published: April 12, 2018 10:08 AM
Shares of IDBI Bank crashed as much as 3.19% to a nearly one-month low of Rs 69.8 on BSE today. (Image: Reuters)

Shares of state-owned Mumbai-headquartered IDBI Bank tumbled more than 3% to nearly one-month low on Thursday after the Reserve Bank of India smacked Rs 3 crore penalty on the PSU bank. “This is to inform that the Reserve Bank of India (RBI) vide letter dated April 10, 2018 has imposed a monetary penalty of Rs 30 million on the Bank, in exercise of powers vested in it under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, for non-compliance with the directions issued by it on Income Recognition and Asset Classification (IRAC) norms,” IDBI Bank said in an exchange filing.

The stock of IDBI Bank emerged as the worst loser among the components of the benchmark Nifty PSU Bank index on Thursday. Shares of IDBI Bank crashed as much as 3.19% to a nearly one-month low of Rs 69.8 on BSE while the stock tanked 3.12% to a low of Rs 69.85. The said penalty will not have any material impact on the bank, IDBI Bank said further. A normal trading volume was seen in the shares of IDBI Bank, as at 9.55 am, more than 77 lakh shares exchanged hands on both NSE and BSE with about 65 lakh on NSE alone.

Shares of other PSU banks were trading mixed on Thursday with Bank of Baroda and Indian Bank leading the charge rising up to 1.2% while the shares of Allahabad Bank, State Bank of India and Punjab National Bank lost up to 0.8%.

Meanwhile today, Indian equities were trading on a flatter note as a series of macroeconomic data and corporate earnings are lined up in the day and the week ahead. The S&P BSE Sensex was trading little changed, up 0.24% at 34,022.82 whereas NSE Nifty was trading 0.1% higher at 10,427.55 on Thursday. Going ahead, the domestic equities will be steered by the movement in the crude oil prices, the outcome of the macro data which includes inflation figures for the month of March 2018 and the major corporate earnings starting with Infosys on 13 April 2018.

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