New Delhi (Anish Yande): Shares of IDFC rose by 12 per cent on Thursday's trading session following the announcement of Reserve Bank of India's has allowed IDFC to exit as the promoter of IDFC First Bank. IDFC shares opened at Rs 60.50 per share from its previous close of Rs 52.80 per share on Wednesday. The shares of the bank rose to an intraday high of Rs 62.90 per share. The market cap of the company rose to Rs 9,451 crore.
Reserve Bank of India allows IDFC to exit:
The Reserve Bank of India (RBI) has allowed IDFC to exit as the promoter of IDFC First Bank. The central bank has approved the exit as the five-year lock-in period expires. The five-year lock-in period ended on 30 September 2020.
IDFC holds a 100 per cent stake in IDFC Financial Holding Company. The IDFC Financial Holding Company retains 100 per cent in IDFC Asset Management. The IDFC Bank reported a net profit of Rs 128 crore in the March quarter, at an increase of 79% year-on-year.
IDFC Ltd holds a stake in the bank through a fully-owned non-operative financial holding company. The holding company’s stake in IDFC First Bank is 36.6% following the latest round of qualified institutional placement of shares.
IDFC Bank company details:
IDFC Bank was created following the demerger of the infrastructure lending business of the financial company to IDFC Bank in 2015. IDFC Ltd had received a licence to establish a full-service bank in 2013. The financial company's shareholder value could be unlocked following the demerger.
On December 18, 2018, IDFC First Bank was founded following the merger of IDFC Bank and Capital First.
Recently, RBI had permitted the holding companies of Equitas and Ujjivan Small Finance Banks to reverse merger with the bank. The parent company, IDFC was required to hold a minimum of 40 per cent stake in the bank. The stake was locked in for the first five years and reduced to 15 per cent over ten years.
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