Shares in IDFC has rallied 7% to Rs 161, its highest level since May 2013 on BSE, after the Reserve Bank of India (RBI) permitted to raise long term funds for lending to infrastructure sector with minimum regulatory pre-emption such as cash reserve ratio (CRR) or statutory liquidity ratio (SLR) and Priority Sector Lending (PSL).
IDFC, which is a leading finance company especially for infrastructure sector obtained a banking license back in April, is seen as one of the main beneficiaries of the measures.
IDFC will be the key beneficiary of these guidelines given FY2018 will be the first year when it would be subjected to these regulatory requirements. The company can now grow its loan book in infrastructure without regulatory restrictions and hence the pressure on its RoAs/RoEs as it converts to a bank will be lower than anticipated earlier, points out analysts at Espirito Santo Securities in a report.
The counter has seen huge trading activity with a combined 30.85 million shares representing 2% of total equity of IDFC changed hands till 1250 hours on BSE and NSE.
IDFC, which is a leading finance company especially for infrastructure sector obtained a banking license back in April, is seen as one of the main beneficiaries of the measures.
IDFC will be the key beneficiary of these guidelines given FY2018 will be the first year when it would be subjected to these regulatory requirements. The company can now grow its loan book in infrastructure without regulatory restrictions and hence the pressure on its RoAs/RoEs as it converts to a bank will be lower than anticipated earlier, points out analysts at Espirito Santo Securities in a report.
The counter has seen huge trading activity with a combined 30.85 million shares representing 2% of total equity of IDFC changed hands till 1250 hours on BSE and NSE.