RBI formally grants IDFC Bank licence

IDFC and Bandhan Financial Services Pvt Ltd emerged successful out of 25 contenders for new bank licences issued by the Reserve Bank of India (RBI) in April last year. Bandhan Financial got RBI approval last month. IDFC Bank plans to start operation from October 1 with an initial loan book of around Rs 55,000 crore. The bank proposes to start operations with 20 branches. It has almost completed the process of <g data-gr-id="33">demerger</g> of financial undertaking into IDFC Bank.

The demerger was in accordance with RBI conditions which require IDFC to transfer the relevant business activities to the proposed IDFC Bank. All new banks are to be set up through a non-operative financial holding company, according to the guidelines. IDFC Bank was established as a public limited company to carry out <g data-gr-id="40">business</g> of banking pursuant to <g data-gr-id="41">approval</g> granted by the Reserve Bank in April 2014. 

Shares of IDFC ended with nearly 3 per cent gains after the infrastructure financing firm said the Reserve Bank has granted <g data-gr-id="34">banking</g> licence to IDFC Bank for undertaking banking business in the country. After surging 6.61 per cent to Rs 163.50 in intra-day trade, shares of the company later gave up some of the gains and finally ended at Rs 157.30, up 2.58 per cent on the BSE. On the NSE, the stock settled 2.64 per cent higher at Rs 157.20. The company’s market valuation rose by Rs 632.14 crore to Rs 25,072.14 crore.

In terms of volume, 37.52 lakh shares of the company changed hands on the BSE and over 2 crore shares were traded on the NSE during the day. “Stocks of IDFC rose after the NBFC declared that it has got banking <g data-gr-id="38">license</g> from RBI,” said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd. “The RBI on July 23, <g data-gr-id="36">2015</g> has granted Banking Licence to IDFC Bank Limited for undertaking banking business in India under Section 22(1) of the Banking Regulation Act, 1949,” IDFC said in a stock exchange filing.

IDFC and Bandhan Financial Services Pvt Ltd emerged successful out of 25 contenders for new bank licences issued by the RBI in April last year. Bandhan Financial got RBI approval last month.