IDFC Bank corrects on profit booking

IDFC Bank fell 2.01% to Rs 51.10 at 13:57 IST on BSE on profit booking after the stock rose 12.88% in the preceding four trading sessions.

Meanwhile, the BSE Sensex was up 20.76 points, or 0.07%, to 27,828.90.

On BSE, so far 7.68 lakh shares were traded in the counter, compared with an average volume of 11.71 lakh shares in the past one quarter. The stock hit a high of Rs 52.35 and a low of Rs 50.50 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 12 July 2016, rising 9.79% compared with 4.40% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 2.52% as against Sensex's 10.59% rise.

The large-cap company has an equity capital of Rs 3394.90 crore. Face value per share is Rs 10. Shares of IDFC Bank listed on the stock exchanges on 6 November 2015.

Shares of IDFC Bank rose 12.88% in the preceding four trading sessions to end at Rs 52.15 yesterday, 12 July 2016, from its recent close of Rs 46.20 on 5 July 2016.

The stock spurted 8.42% to Rs 52.15 yesterday, 12 July 2016, after the bank said it signed a share purchase agreement to acquire 100% of Grama Vidiyal Micro Finance, one of the largest microfinance institutions in the country. Upon completion of acquisition, Grama Vidiyal will be a wholly-owned subsidiary of IDFC Bank. Grama Vidiyal will act as a dedicated Business Correspondent of IDFC Bank, and will help deepen reach and widen the delivery mechanism for banking services. The move enables IDFC Bank to significantly enhance its network and reach and make basic banking services available to a large customer base.

The 30-year-old, Tamil Nadu-headquartered Grama Vidiyal has an AUM (Assets Under Management) of Rs 1502 crore of micro finance assets, as on 31 March 2016. All loan assets on the book will be transferred to IDFC Bank.

IDFC Bank reported net profit of Rs 165.06 crore on operating income of Rs 1953.20 crore in Q4 March 2016.

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 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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