IDFC Bank gains after clarification

IDFC Bank rose 2.68% to Rs 65.05 at 9:44 IST on BSE after the bank refused to comment or deny reports of merger with Shriram group companies.

Meanwhile, the S&P BSE Sensex was down 34.94 points, or 0.11% to 31,334.40.

On the BSE, 12.45 lakh shares were traded in the counter so far, compared with average daily volumes of 12 lakh shares in the past one quarter. The stock had hit a high of Rs 66 and a low of Rs 64.50 so far during the day. The stock hit a record high of Rs 83.45 on 28 September 2016. The stock hit a 52-week low of Rs 46.30 on 7 July 2016.

The stock had outperformed the market over the past one month till 6 July 2017, rising 7.46% compared with 0.31% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 4.88% as against Sensex's 5.60% rise. The scrip had also outperformed the market in past one year, rising 33.65% as against Sensex's 15.32% rise.

The large-cap company has equity capital of Rs 3,401 crore. Face value per share is Rs 10.

Media reports suggested that Shriram Transport Finance, Shriram City Union Finance will merge with IDFC Bank; and Shriram Capital's Life, General insurance business will merge with IDFC.

IDFC Bank clarified after market hours yesterday, 6 July 2017, that it keeps evaluating opportunities from time to time and should anything concrete fructify, it will inform the exchanges as appropriate. At this point, there is nothing that can be disclosed. Under the circumstances, it is unable to confirm or deny the news reports. Meanwhile, it cannot comment on the market speculations.

Net profit of IDFC Bank rose 6.60% to Rs 175.95 crore on 16.7% rise in operating income to Rs 2279.65 crore in Q4 March 2017 over Q4 March 2016.

IDFC Bank, a subsidiary of IDFC, is a universal bank, offering financial solutions through its nationwide branches, internet and mobile.

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