IDFC First Bank tumbles 6% in two day

IDFC First Bank fell 2.31% to Rs 29.55, extending losses for second consecutive trading day.

The scrip has lost 5.74% in two sessions from its recent closing high of Rs 31.35 on 13 August 2020. During the same period, the Nifty Bank index and the Nifty 200 index fell 2.53% and 0.72%, respectively.

On Friday (14 August 2020), the media reported that the proposal of a reverse merger between IDFC First Bank and IDFC was back in discussion, four year after it was initially suggested. The move is expected to benefit IDFC shareholders and unlock value, reports said.

IDFC First Bank, however, clarified to the bourses on Sunday (16 August 2020) that there has been no discussion regarding reverse merger with IDFC at the board of the bank or at any level. Any reports that suggest that such application will be made by end of September 2020, as suggested by the article, is purely speculative in nature.

IDFC First Bank provides a range of financial solutions to individuals, small businesses and corporates. As of 30 June 2020, the bank has 503 branches and 417 ATMs across the country.

The bank reported a net profit of Rs 93.55 crore in Q1 June 2020 compared with net loss of Rs 617.36 crore in Q1 June 2019. Total income rose 5.2% to Rs 4,316.24 crore in Q1 FY21 from Rs 4,103.57 crore in Q1 FY20. Net interest margin was at 4.53% as on 30 June 2020 as compared to 3.01% as on 30 June 2019.

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