IDBI Bank - It Is Going to Be a Long and an Arduous Road to Recovery

India Financials

Saumya Agarwal

Equity Bottom-Up

<p>Last month, IDBI Bank announced the draft scheme for setting off its accumulated losses against the Share Premium account balance. As per IDBI Bank, this accounting re-arrangement will help represent its true financial position and also benefit shareholders in the long run. Though not commonly used, this kind of accounting exercise is not 'first-of-its-kind' for an Indian Bank. Can this accounting move really be a game changer for IDBI Bank?</p>

Last month, IDBI Bank announced the draft scheme for setting off its accumulated losses against the Share Premium account balance. As per IDBI Bank, this accounting re-arrangement will help represent its true financial position and also benefit shareholders in the long run. Though not commonly used, this kind of accounting exercise is not 'first-of-its-kind' for an Indian Bank. Can this accounting move really be a game changer for IDBI Bank?

IDBI Bank: Can ‘setting-Off’ the Accumulated Losses Be a Game Changer for IDBI Bank?

IDBI Bank Ltd

IDBI Bank: Can ‘setting-Off’ the Accumulated Losses Be a Game Changer for IDBI Bank?