NEW DELHI: Shares of IDBI Bank dropped as much as 6.3 per cent on Monday to Rs 59.70, its lowest since May 21. The government has named IDBI Banks CEO Mahesh Kumar Jain as RBI deputy governor for three years.
"Jain was working in Indian Bank where there was a turnaround back in 2015 because of his strategies such as the sale of non-core assets and reduction of high corporate debt. Then he was transferred to IDBI Bank for its turnaround," says Yuvraj Choudhary, an analyst at Anand Rathi Securities.
Jain's exit is negative for stock, Choudhary added.
More than 8.5 million shares changed hands, compared with a 30-day moving average of nearly 13 million.
Till last Friday, the stock had risen 6.4 per cent this year.