Mumbai, Sept. 2: Share prices of both the Industrial Development Bank of India (IDBI) and IFCI Ltd rose sharply on the bourses today, bolstered by the finance ministerís indication last week that the government was likely to rescue these beleaguered institutions as well.
While the Delhi-based IFCI was locked in at the 20 per cent upper circuit throughout the day, IDBI finished higher by 8 per cent over its previous close. The IDBI scrip, which opened at Rs 22.90 and rose to an intra-day high of Rs 22, finished slightly lower from these levels at Rs 20.45, from its previous close of Rs 18.95. The counter witnessed 1,248 trades with 3.45 lakh shares being transacted, generating a turnover of Rs 71.32 lakh.
On the other hand, the IFCI scrip was continually stuck at the 20 per cent upper band at Rs 5.60 over the previous close of Rs 4.70. The counter saw 18,401 shares being transacted, generating a turnover of over Rs 1 lakh. Singh told reporters last Saturday that the government has decided to deal with UTI, IFCI and IDBI one by one and that IFCIís case would be taken up by the Cabinet Committee on Economic Affairs (CCEA) soon.
The share prices of both IDBI and IFCI have witnessed persistent hammering largely due to their poor bottomlines which are giving way under the weight of their large non-performing assets (NPAs).