|Bid||38.85 x 0|
|Ask||0.00 x 0|
|Day's Range||38.50 - 39.80|
|52 Week Range||17.50 - 55.75|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 28, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||41.00|
The Reserve Bank of India said on Wednesday it will take IDBI Bank Ltd out of its prompt corrective action (PCA) list after it found the state-run lender was not in breach of its rules on regulatory capital, bad loans and leverage ratio. IDBI Bank was placed under the so-called PCA framework in 2017 over its high bad loans and negative return on assets, at a time when Indian lenders battled record levels of soured assets, prompting the RBI to tighten thresholds. The RBI added IDBI has committed to complying with the central bank's norms on an ongoing basis.
Indian merchants have almost entirely stopped signing new export contracts with Iranian buyers for commodities such as rice, sugar and tea, due to caution about Tehran's dwindling rupee reserves with Indian banks, six industry officials told Reuters. "Exporters are avoiding dealing with Iran since payments are getting delayed for months," said a Mumbai-based dealer with a global trading house. Iran's rupee reserves in India's UCO and IDBI Bank, the two lenders authorised to facilitate rupee trade, have depleted significantly and exporters are not sure whether they would be paid on time for new shipments, the dealer said.
India's plan to set up a bad bank may boost valuations and ease short-term stress for state-owned lenders, but bankers and sector insiders are concerned it will not solve deeper problems. Finance Minister Nirmala Sitharaman has proposed creating an asset reconstruction company (ARC) for India's bad-debt laden lenders to offload soured assets, which some analysts estimate now total $100 billion. "It is a good move but there are more fundamental issues on how to recognise problem loans early and resolve them, which still need to be fixed," Sanjoy Datta, Deloitte India financial services practice head, said of the budget proposal.