IDFC First Bank To Issue Compulsorily Convertible Shares Worth Rs 2,623 Crore Via Preferential Route

IDFC First Bank Ltd. approved on Tuesday a preferential allotment of compulsorily convertible cumulative preference shares worth Rs 2,623 crore to Platinum Invictus B 2025 RSC Ltd.

The bank will issue 43.71 crore fully paid-up compulsorily convertible cumulative preference shares with a face value Rs 10 each. The shares will be issued at a price of Rs 60 per share on a private placement basis, taking the total issue size to Rs 2,623 crore, it said in an exchange filing on Tuesday.

Earlier, on May 15, IDFC First Bank had received in-principle approvals from both BSE and the National Stock Exchange of India for the preferential issue.

A jump in provisions against bad loans has led IDFC First Bank to report a standalone net profit of Rs 463 crore, down by 32% on year. According to the financial metrics, this is largely impacted by microfinance business and interest rate movement.

Provisions and contingencies of the bank jumped 67% on year to 1,659 crore. This was impacted by slippages in the bank's micro-finance book, the press release said.

Due to rise in provisions, the bank's gross non-performing assets ratio came in at 1.97% as compared to 1.87% a quarter ago. Net NPA also rose slightly at 0.55% as against 0.53% in the prior quarter. On the profitability side, the bank's net interest income rose 5.1% on year to Rs 4,933 crore. Consequently, net interest margin at 5.71%, down 24 bps on quarter.

The business update was shared after market hours. The stock settled 1.99% higher at Rs 71.29 apiece on the NSE, compared to a 0.46% advance in the benchmark Nifty 50.

IDFC First Bank's shares have fallen 1% in the last 12 months and risen 12.91% year-to-date.