IDFC shares fall over 2% on profit-booking

Shares of infrastructure financing firm IDFC today pared early gains, falling over 2 per cent on profit-booking in-line with a weak stock market, even as the Reserve Bank granted in-principle approval to the company to set up a new bank.
After surging 8.71 per cent to Rs 139.15 in intra-day trade, IDFC's stock surrendered the gains and ended at Rs 124.95, down 2.38 per cent at the BSE.
On the NSE, the company's stock settled lower by 2.43 per cent at Rs 124.70.
The Reserve Bank had yesterday granted an in-principle approval to IDFC and Bandhan Financial Services to foray into the banking business.

The approval will be valid for a period of 18 months, during which the applicants have to comply with the requirements under the guidelines and fulfil other conditions as may be stipulated by the RBI, said IDFC in a filing to the BSE today.
On being satisfied that the applicants have complied with the requisite conditions laid down by the RBI as part of in-principle approval, they would be considered for grant of a licence for commencement of banking business, it said.
Until a regular licence is issued, the applicants would be barred from doing banking business.
In the broader market, the BSE benchmark Sensex ended at 22,509.07, down 42.42 points.