March 11, 2019 / 8:34 AM / 4 months ago

BUZZ-India's IDBI Bank rises on turnaround plan, report of NPA asset sales

** Shares of IDBI Bank Ltd rise as much as 4.8 pct to 45.45 rupees

** IDBI Bank along with majority shareholder Life Insurance Corp of India is working out a turnaround plan by “leveraging” their “mutual business synergies”, the state-run lender said on Sunday

** Co said plan included “rationalising” common subsidiaries in mutual funds and life insurance; forms joint task force to chart out future roadmap

** Separately, IDBI Bank has invited expression of interest to sell 5 non-performing assets worth 12.48 bln rupees ($178.48 mln), including one worth 10.56 bln rupees to Reliance Communications Ltd, Newsrise Financial reported

** IDBI did not immediately respond to a request for comment on the Newsrise report

** News about them putting their insurance and mutual fund businesses on the block is positive, says Yuvraj Choudhary, an analyst with Anand Rathi

** Also, they are trying to sell their NPA assets which most PSU banks are also trying to do before March 31, as optically GNPA numbers will improve and it may also help them reach the PCA (prompt corrective action framework) targets, Choudhary says

** More than 11 mln shares change hands vs 30-day avg of 8 mln shares ($1 = 69.9250 Indian rupees)

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