IDBI Bank stock rallies 17% Monday on FM Jaitley's comments

Shareholders of IDBI Bank had a reason to cheer on Monday. The bank's stock had rallied almost 17% intraday on the back of supportive statements over the weekend from Finance Minister Arun 

Jaitley had, over the weekend, talked about giving more operative freedom to state-owned banks, while citing the example of the Axis Bank model, which the FM said, seems to have worked reasonably well. Jaitley was giving an interview to CNBC TV-18.

Jaitley said that while the government holds shares in Axis Bank through various government instruments, it has still managed to maintain arm's length from the bank's daily operations, "which has done remarkably well".

Citing this example, Jaitley said that the same model can be considered for other similarly-structured banks, like IDBI Bank, in which the government holds 76% and yet it is not considered to be a state bank. 

On Monday, IDBI's shares had rallied to nearly 17%, despite the benchmark Sensex riding low. On Tuesday morning, in early trade, IDBI Bank's stock was up slightly by Rs 0.05 or 0.07% at Rs 60.50 from previous day's close.