IDFC Bank rose 2.72% to Rs 52.90 at 10:10 IST on BSE after the Reserve Bank of India allowed foreign investors to enhance investment in the bank from the existing 24% to 46%.
Meanwhile, the BSE Sensex was up 168.06 points, or 0.60%, to 28,004.56.
On BSE, so far 1.25 lakh shares were traded in the counter, compared with an average volume of 11.65 lakh shares in the past one quarter. The stock hit a high of Rs 52.95 and a low of Rs 51.80 so far during the day. The stock hit a record high of Rs 73.45 on 6 November 2015. The stock hit a record low of Rs 43.15 on 21 January 2016. The stock had outperformed the market over the past one month till 15 July 2016, rising 8.99% compared with 4.15% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 4.72% as against Sensex's 8.62% rise.
The large-cap bank has an equity capital of Rs 3394.90 crore. Face value per share is Rs 10.
The Reserve Bank of India on Friday, 15 July 2016 notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now enhance investment from existing 24% to 46% of the paid up capital of IDFC Bank under the portfolio investment scheme (PIS). The RBI further notified that the total foreign investment from all sources i.e. foreign institutional investors (FII)/registered foreign portfolios investors (RFPIs)/foreign direct investment (FDI)/non-resident Indians (NRI)/persons of Indian origin (PIO)/American depository receipts (ADR)/Global depository receipts (GDR)/ in IDFC Bank shall not exceed 46%. The RBI has stated that IDFC Bank has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.
IDFC Bank reported net profit of Rs 165.06 crore on operating income of Rs 1953.20 crore in Q4 March 2016.
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IDFC Bank is a subsidiary of IDFC. The Reserve Bank of India (RBI) granted a universal banking license to IDFC on 23 July 2015. IDFC demerged on 1 October 2015, transferring all assets and liabilities of its lending business to IDFC Bank. IDFC Financial Holding Company holds 52.95% stake in the bank as per the shareholding pattern as at 5 July 2016. Shares of IDFC Bank listed on the stock exchanges on 6 November 2015.
IDFC Bank is a universal bank, offering financial solutions through its nationwide branches, internet and mobile. IDFC Bank will focus on serving the rural underserved communities and the self-employed, while continuing to support the country's infrastructure sector. IDFC Bank provides customized financial solutions to corporates, individuals, small and microenterprises, entrepreneurs, financial institutions and the government.
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