IDFC posts Rs 262 cr profit for Jul-Sept

PTI, Nov 9, 2021, 5:31 PM IST

IDFC Ltd, the promoter of IDFC First Bank, on Tuesday reported a consolidated net profit of Rs 262.55 crore for the quarter ended in September 2021.

The company had reported a net loss of Rs 146.91 crore in same period a year ago. It posted a loss of Rs 410.08 crore in the April-June quarter of 2021-22.

The company’s total income during July-September 2021-22 rose to Rs 138.93 crore from Rs 91.54 crore in the same period of 2020-21, according to a regulatory filing by the company. The board of IDFC Ltd also approved merger of its three wholly-owned subsidiaries into the company, as part of a simplification process.

”The board of directors of IDFC Ltd, as part of simplification of corporate structure, approved the merger scheme of IDFC Alternatives Ltd, IDFC Trustee Company Ltd and IDFC Projects Ltd (wholly owned subsidiary companies) into IDFC Ltd,” the company said in a regulatory filing.

The mergers are subject to regulatory approvals from various authorities, as applicable, it added.

IDFC Ltd, being the promoter of the IDFC First Bank, can now exit as the promoter of the bank, after the expiry of the five-year lock-in period on September 30, 2020.

The RBI regulation required that the promoter should hold a minimum of 40 per cent shareholding for a period of five years from the commencement date of operations of the bank.

IDFC presently holds nearly 36.50 per cent equity in IDFC First Bank through its wholly-owned subsidiary IDFC Financial Holding Company Ltd (FHCL), which is a non-operational financial holding company registered as an NBFC with the Reserve Bank (RBI).

Last month, IDFC Ltd wrote a letter to IDFC First Bank in relation to unlocking value for its shareholders.

”With reference to our letter dated October 25, 2021 written to the Chairman of the Board of IDFC First Bank, we’re still awaiting response on the same,” IDFC said.

Among others, the board of directors of the company also approved appointment of Anita Belani as an additional director in the category of independent director for a period of three years with immediate effect.

IDFC Ltd shares closed at Rs 58.90 apiece on BSE, up 3.24 per cent from the previous close.