IDFC First Bank Shares Jump 3% On RBI's Approval Of Merger With IDFC, IDFC Financial Holding
On 19 December, shares of IDFC First Bank surged by 3 per cent to reach a high of Rs 92.33 per share following the Reserve Bank of India's (RBI) approval of the merger between IDFC and IDFC Financial Holding Company with the bank.
Over the last month, the stock of this private sector lender has seen a 6 per cent increase compared to the 8 per cent rise in the benchmark Sensex. Previously, IDFC First Bank shares hit a 52-week high of Rs 100.74 per share on 5 September 2023.
The RBI provided its 'no objection' to the amalgamation scheme, subject to compliance with specified terms and conditions, as per the exchange filing.
The filing notes that the scheme is contingent upon various statutory and regulatory approvals, including those from the National Company Law Tribunal and the respective shareholders involved in the scheme.
Previously, the bank reported robust loan growth of 26.1 per cent year-on-year in the July-September quarter, primarily propelled by home loans, vehicle financing and rural finance.
Analysts at Axis Securities adjusted their estimates for advances growth upwards, valuing the bank at 1.9x FY25E ABV. They anticipate improved advances growth in H2FY24, considering the festive season and the traditionally better performance of H2 over H1.
