IDFC BANK:

IDFC bank was born out of demerger of parent IDFC Ltd on 1st Oct 2015. IDFC Ltd was a popular stocks, priced sub Rs.100. Hence many investors would have had it in their portfolio. And all these investors got IDFC Bank allotted in the ratio 1:1.

Post listing both IDFC Ltd and IDFC Bank languished for quiet long. The stock got listed @ Rs.61, sank to Rs.44 on 29th Feb 2016 (around budget day). It was testing the patience. But atlast their patience is being paid off. IDFC Bank is steadily gaining grounds and the stock is currently trading at Rs.74, after hitting a high of Rs.79 on 30th Sept 2016.

Now, what’s fuelling IDFC Bank:

• IDFC bank’s Q2 net profit has increased 46%.
• Operating income @ 27%
• Non interest income has doubled at Rs.396 Cr from Q1FY17 due to trading gains of Rs.166 Cr.
• Funded credit (Net advance + Credit inv) is up 13%
• Total Credit is up 17% at Rs.67862 Cr vs Rs.57809 Cr in Q1 FY 17.
• Cash deposit ratio @ 7.8% – expected to improve to 15% in 3 years.
• Net NPA @ 2.4%
• Share of infrastructure lending @ 78% in Q2FY17 Vs 88% in FY 2016.
• Small and medium enterprise loans and mid market loans @ 8% : to grow to 17%
• Customer base expanded to 1.25 Lakh vs 0.60 lakhs in Q1 FY17 – Thanks to 30 second account opening with Aadhar cards
• Acquisition of Grama Vidiyal Microfinance has been completed on 13th oct 2016.
• 1154 customer points across 61 districts and 15 states.
• 71 branches
• 32 ATM’s
• 727 micro ATM’s
• 324 business correspondent outlets (including 322 grama vidiyal outlets)

IDFC Bank is expected to grow steadily. Given its good quality management and focussed approach, investors can look at it with long term perspective