The Telegraph
Monday , June 16 , 2014
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IDFC bank by October next year

New Delhi, June 15 (PTI): Infrastructure finance company IDFC, which recently bagged a commercial banking licence, plans to start operations by October next year.

“It (IDFC Bank) should be operational by October 2015,” IDFC chairman Rajiv Lall said.

IDFC and Bandhan emerged successful out of about 25 contenders for new licences issued by the Reserve Bank in April.

Earlier this month, IDFC decided to come out with a follow-on public offer to bring down foreign shareholding in the company below 50 per cent.

According to the existing regulations, the bank has to be floated by a domestic entity.

At present, foreign ownership is about 53 per cent which makes IDFC a foreign entity. Therefore, it needs to pare foreign investor holding.

The company plans to come out with the follow-on public offer or a preferential offer by October this year.

Meanwhile, IDFC recorded a 51 per cent drop in net profit at Rs 257.94 crore in the fourth quarter ended March 31.

Consolidated net profit was Rs 525.70 crore in the same quarter of 2012-13.