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IDFC to start banking operations by October 2015

LiveMint logoLiveMint 15-06-2014 PTI

New Delhi: Infrastructure finance company IDFC Ltd, which recently won a commercial banking licence, plans to start bank operations by October next year, IDFC chairman Rajiv Lall told PTI.

IDFC and Bandhan Financial Services Pvt. Ltd emerged successful out of about 25 contenders for new bank licences issued by the Reserve Bank of India (RBI) in April.

Earlier this month, IDFC decided to come out with a follow-on public offer or preferential offer by October this year to bring foreign shareholding in the company to below 50%.

As per the existing regulations, the bank has to be floated by a domestic entity and, currently, foreign ownership is about 53%, which makes IDFC a foreign entity.

IDFC recorded a 51% drop in net profit at `257.94 crore in the quarter ended 31 March compared to `525.70 crore in the same quarter in 2012-13, while total income rose marginally to `2,219.57 crore from `2,218.41 crore.

For the full 2013-14 fiscal, IDFC posted a 1.82% drop in net profit at `1,802.68 crore, down from `1,836.20 in 2012-13. Total income increased to `8,789.99 crore in 2013-14, from `8,148.42 crore in the previous fiscal.

On a standalone basis, net profit more than halved to `213.04 crore during the January-March quarter of 2013-14 as against `451.04 crore in the year-ago period.

For the entire fiscal, standalone net profit fell 3.62% to `1,701.12 crore, as compared to `1,764.98 crore for 2012-13.

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