Will not sell stake in IDBI Bank at a loss: LIC
IDBI Bank’s current stock price is not reflective of its true value, Vipin Anand, MD, LIC India said in an interview with CNBCTV18. IDBI Bank shares are trading around Rs 35 and are pretty much flat year-on-year.
IDBI Bank’s current stock price is not reflective of its true value, Vipin Anand, MD, LIC India said in an interview with CNBCTV18. IDBI Bank shares are trading around Rs 35 and are pretty much flat year-on-year.
LIC holds 51 percent in IDBI Bank, and earlier this year, Anand said that they would reduce stake ahead of the 12 year deadline set by the RBI.
Anand told CNBCTV18 that he was hopeful of the bank coming out of the Prompt Correct Action framework and resume lending.
“IDBI Bank is doing extremely well. Last two quarters they have done well, they have shown good profit growth figures. We are hoping that very soon RBI will allow them to come out of PCA and start lending and that is when the real movement will start. As of now the price is not very attractive of the stock but as it comes out of PCA we can start thinking of..,” Anand said.
“The price of the stock in the market is not reflective of intrinsic value because we and the government hold the entire portfolio. So it will depend on the business performance and other factors. Definitely, we will not go with a loss,” he said.
First Published: Oct 9, 2020 11:57 AM IST
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