IDFC First Bank merger: Shareholders and non-convertible debenture (NCD) holders of IDFC First Bank have approved the proposal to merge parent company IDFC Limited with the bank. The bank told the stock market that the National Company Law Tribunal (NCLT) had called a meeting through video conference and other means on May 17 to consider and approve the merger plan. The bank’s board informed the NCLT of the outcome of the voting on the merger proposal. He said that 99.95 votes were cast in favor of the merger plan.
Reserve Bank’s approval last year
In December last year, RBI had given its approval to the proposal of merger of IDFC Limited with its banking subsidiary IDFC First Bank. At the same time, the boards of directors of both the banks had approved the proposal of merger of these two in July 2023. Let us tell you that under the merger plan, a shareholder of IDFC will get 155 shares for every 100 shares held in the bank.
Bank’s net profit fell
In the fourth quarter (January-March, 2024) of the last financial year, the net profit of IDFC First Bank declined by 10 percent to Rs 724 crore. The company said on Saturday that the profit has declined due to huge increase in provisions. The profit of the bank in the same quarter of the financial year 2022-23 was Rs 803 crore. Total income increased to Rs 9,861 crore in the March quarter from Rs 7,822 crore in the same quarter of 2022-23. The company’s interest income increased to Rs 8,219 crore in the March quarter.
share status
Talking about IDFC First Bank share, the price is at Rs 77.44. A slight rise in the stock was recorded on the special trading day on Saturday. Let us tell you that on September 2023, this share had gone up to Rs 100.74. This is the 52-week high of the stock. Whereas, if we talk about IDFC Limited, on Saturday this share closed at Rs 114.35 with a slight gain.
