IDFC gains on receiving RBI nod to use Rs 2,500 crore reserve as provision

RBI gave nod to the firm to use Rs 2,500 crore non-distributable reserves for provisions against bad loans to clean its book

Shares of IDFC have climbed 2% to Rs 136.55 on the BSE after the RBI gave nod to the Infrastructure finance firm to use Rs 2,500 crore non-distributable reserves for provisions against bad loans, as part of an exercise to clean its book before venturing into universal banking.

The RBI now granted approval to utilize non-distributable statutory reserves up to Rs 2,500 crore for creation of specific provisions against stressed assets, IDFC said in a BSE filing.

"These additional provisions are being created after a careful examination of the stressed assets portfolio and in accordance with our philosophy of prudent risk management and transparency," the company added.

The stock opened at Rs 134.40 and touched a high of Rs 137.30 on the BSE. A total of 543,661 shares changed hands on the BSE so far.