Shares of IDBI Bank jumped after Reserve Bank of India (RBI) on March 10 has removed IDBI Bank from its enhanced regulatory supervision or Prompt Corrective Action (PCA) framework after a gap of nearly four years on improved financial performance.

The Reserve Bank of India had placed IDBI Bank, one the leading public sector banks, under PCA framework in May 2017, after it had breached the thresholds for capital adequacy, asset quality (net NPAs was over 13% in March 2017), return on assets and the leverage ratio. The performance of IDBI Bank was reviewed by the Board for Financial Supervision (BFS) in its meeting held on Feb. 18, 2021.

"Taking all the above into consideration, it has been decided that IDBI Bank be taken out of the PCA framework, subject to certain conditions and continuous monitoring," the RBI said.

The bank is not in breach of the PCA parameters on regulatory capital, net NPA and leverage ratio, it said.  

Shares of IDBI Bank are trading at Rs 42.70, up Rs 4.45, or 11.63%  at the Bombay Stock Exchange (BSE) on Friday at 12.09 p.m.

The scrip has touched an intra-day high of Rs 44.80 and low of Rs 41.95. The total volume of shares traded at the BSE was 81,89,450.

The stock has touched a 52 week high of Rs. 55.75 and a 52 week low of Rs. 17.50 on Jul.07, 2020 and Mar.13, 2020 respectively.