IDFC Bank trades lower after 4.5% equity changes hands

IDFC First Bank was among the eight stocks that made their way into MSCI Global Standard Index on August 31

IDFC First Bank was trading with minor cuts in the afternoon session on September 1 after shares worth Rs 2,526 crore changed hands in a block deal.

A total of 28.1 crore shares, representing 4.5 percent equity stake, changed hands at Rs 90 apiece, taking the transaction size to Rs 2,526 crore, exchange data shows.

The buyers and sellers could not be identified immediately.

IDFC First Bank is among the eight stocks to have made its way into MSCI Global Standard Index on August 31, which is expected to give a boost to fund flows.

In the first quarter of the current financial year, the private sector lender reported a 61.3 percent year-on-year (YoY) increase in net profit at Rs 765.16 crore, aided by a healthy growth in the net interest income and improved asset quality.

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The Mumbai-based bank’s net interest income (NII), the difference between the interest earned from lending and paid to depositors, grew 36 percent on-year to Rs 3,745 crore.

Net interest margin, a key metric of profitability, was up 56 basis points at 6.33 percent from the year-ago period but was lower than 6.41 percent in the previous quarter.

Also read: IDFC First Bank merger: Ratio fixed at 155:100, amalgamation to complete this year

At 12.45 pm, the stock was trading at Rs 93.15 on the BSE, down 0.20 percent from the previous close. The stock had hit its 52-week high of Rs 95.54 in the previous session.

The shares of the company are up 52 percent this year, while the 1-year return stands at 90 percent.

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