LIC has increased its stake in IDFC First Bank by acquiring an additional 0.2 percent through private placement, disclosing this move in an exchange filing on July 4. The purchase was made at Rs 80.63 per share, purely for investment purposes, bringing LIC’s total stake in IDFC First Bank to 2.68 percent.
So far this year, IDFC First Bank shares have declined by 7.6 percent, though they have seen a slight increase of 3 percent over the past twelve months.
On May 30, IDFC First Bank approved the issuance of shares worth Rs 3,200 crore on a preferential basis at Rs 80.63 per share, with LIC among the major allottees. Other allottees included HDFC Life, AB Sun Life, Bajaj Allianz, ICICI Lombard, and SBI General.
IDFC First Bank, valued at over Rs 57,000 crore, specializes in banking services. In Q4FY24, the bank reported a 24 percent growth in Net Interest Income (NII) to Rs 4,469 crore. Its gross Non-Performing Assets (NPAs) decreased to 1.88 percent of gross advances as of March 31, 2024, down from 2.51 percent a year earlier. Despite this, the bank’s net profit for the fourth quarter ended March 2024 declined by 10 percent to Rs 724 crore, primarily due to increased provisions.
