LIC increases stake in IDFC First Bank by 0.2%

5 Jul 2024 , 11:00 AM

State insurer Life Insurance Corporation of India (LIC) has expanded its stake in IDFC First Bank to 2.68%, purchasing the lender’s shares for ₹80.63 each. The overall acquisition cost is ₹1,500 Crore.

According to the LIC filing, the number of preferential shares has increased from 1.42 Crore to 20 Crore, representing 0.20% of the pre-issue paid-up capital to 2.68% of the post-issue paid-up capital.

IDFC First Bank has been a market laggard over the past year, returning approximately 3%. This year, its share price has fallen by 8%. The stock has fallen 24% since its 52-week high of ₹100.74.

IDFC First Bank reported a net profit of ₹724.35 Crore for the quarter ended March 31, down from ₹802.62 Crore a year ago. Interest income was reported at ₹8,219.21 Crore in the January-March quarter, up from ₹6,424.35 Crore in the previous year. It was increased 28% year on year.

The interest expense for the three months ending March 31, 2024, was ₹3,750.34 Crore, up from ₹2,827.60 Crore in Q4FY23. It increased by 32.63%.

Total bank deposits increased by 38.7% year on year, from ₹1,44,637 Crore as of March 31, 2023, to ₹2,00,576 Crore as of March 31, 2024.

Customer deposits climbed by 41.6% year on year from ₹1,36,812 Crore on March 31, 2023, to ₹1,93,753 Crore on March 31, 2024, while CASA deposits jumped by 31.7% year-on-year from ₹71,983 Crore on March 31, 2023, to ₹94,768 Crore on March 31, 2024.

At around 10.54 AM, LIC was trading almost flat at ₹1,010 per piece, against the previous close of ₹1,010.20 on NSE. The counter touched an intraday high and low of ₹1,024.20, and ₹1,006.50, respectively.

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