IDFC First Bank Surges 3% as RBI Approves Merger with IDFC and Financial Holding

20 Dec 2023 , 02:06 PM

IDFC First Bank shares experienced a 3 % surge, reaching a day’s high of Rs 92.33 per share on December 19, following the Reserve Bank of India’s (RBI) approval of the merger of IDFC and IDFC Financial Holding Company with itself.

Over the past month, the stock of this private sector lender has risen by more than 6 %, outperforming the benchmark Sensex’s 8 % increase. The stock had previously hit a 52-week high of Rs 100.74 per share on September 5, 2023.

As per the exchange filing, the RBI issued a ‘no objection’ to the composite scheme of amalgamation, contingent upon adherence to specified terms and conditions.

The successful implementation of the scheme is subject to various statutory and regulatory approvals, including those from the National Company Law Tribunal and the respective shareholders of the involved companies, as mentioned in the filing.

In the July-September quarter, IDFC First Bank reported a robust loan growth momentum of 26.1 % year-on-year, primarily propelled by growth in home loans, wheels, and rural finance.

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