The Central Government of India is set to invest Rs. 3,000 crore in IDBI Bank as a bailout package. The infusion of funds is expected to help the bank in maintaining its capital adequacy ratio and revive its falling credit growth. Earlier the bank has received approval from board of directors to divest some of its non core activities through which the bank expects to raise Rs. 5,000 crore.
IDBI Bank has reduced its home loan interest rates by 60 basis points for new home loan borrowers. The revised home loan interest rate now stands at 8.55 percent as compared to 9.15 percent earlier. The new rate is effective from 1st February, 2017.
IDBI Bank has reduced its overnight and three months marginal cost of lending rates to 8.50 and 8.85 percent as compared to 8.75 and 9.15 percent earlier. The revised MCLR for six months and one year now stands at 8.90 and 9.15 percent respectively. Similarly, three year MCLR has reduced to 9.30 percent as compared to 9.70 percent earlier. The rates are effective from 1st January, 2017.
IDBI Bank has reported an increase of 78.35 per cent in its net profit in the June quarter of FY17 due to a large tax write back during the quarter. Net profit rose to Rs. 241.10 in June quarter of current fiscal crore from Rs. 135.18 crore in the same period of previous year. Net interest income of the bank rose by 14.2 per cent to Rs. 1706.50 crore in the June quarter of FY17 from Rs.1494.33 crore in the same period of FY16. Gross NPAs as a percentage rose by 9.65 per cent to Rs. 27275.15 crore in June quarter from Rs. 24875.07 crore in the March quarter. Net NPAs of the bank stood at 7.47 per cent in the June quarter up from 6.78 per cent in the previous quarter ending March 2016 and 3.18 per cent in the same quarter last year.
With effect from 1st August 2016, IDBI Bank has announced a cut of 10 basis points in its base rate and base rate will stand revised to 9.65 percent. The Bank has also announced a reduction in Benchmark Prime Lending Rate (BPLR) to 14.15 percent.. If you have taken Home Loan or Persona Loan from IDBI before 1st April 2016 at floating rate then you will benefit from this rate cut. But if have taken home loan at fixed rate you will not be effected by the rate cut.
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