LIC raises stake in IDFC First Bank by 0.2% to 2.68% via private placement

IDFC First Bank has underperformed in the market over the past year, gaining only 3% and declining 8% year-to-date. The stock is currently trading 24% below its 52-week high of Rs 100.74.

State insurer () has increased its shareholding in to 2.68% acquiring the lender's shares at a price of Rs 80.63 apiece. The total cost of acquisition is Rs 1,500 crore.

The number of shares have been raised from 1.42 crore to 20 crore on a preferential basis, which is 0.20% of the pre-issue paid-up capital to 2.68% of the post issue paid-up capital, the LIC filing said.

The announcement was made post the market hours and IDFC First Bank's shares on Thursday ended at Rs 81.19 on the BSE, gaining by Rs 0.32 or 0.40%. Meanwhile, LIC shares closed at Rs 1010.05, gaining Rs 22.25 or 2.25% over Wednesday’s closing price.

IDFC First Bank has been a market laggard for the past 12 months returning nearly 3% in this period. This year, it has seen its share price erode by 8%. The stock is down by 24% from its 52- week high of Rs 100.74.

IDFC First Bank reported a net profit of Rs 724.35 crore for the quarter ended March 31, which was down from Rs 802.62 crore reported by the lender in the year-ago period. The interest income was reported at Rs 8,219.21 crore in the January-March quarter, which was higher from Rs 6,424.35 crore reported in the year-ago period. It was up by 28% on the year-on-year basis.

Interest expended during the three-month period ended March 31, 2024, stood at 3,750.34 crore versus Rs 2,827.60 crore reported in Q4FY23. It was up by 32.63%.

Total deposits of the bank increased by 38.7% Y0Y from Rs 1,44,637 crore as of March 31, 2023 to Rs 2,00,576 crore as of March 31, 2024.

While customer deposits increased by 41.6% YoY from Rs 1,36,812 crore as of March 31, 2023, to Rs 1,93,753 crore as of March 31, 2024, the CASA deposits grew by 31.7% YoY from Rs 71,983 crore as of March 31, 2023 to Rs 94,768 crore as of March 31, 2024.

CASA Ratio stood at 47.2% as of March 31, 2024.

Source: Stocks-Markets-Economic Times