IDFC to start bank operations with 20 branches from October 1; stock surges

MUMBAI: IDFC became the top sectoral gainer on the Nifty and gained as much as3.74 per cent in intraday trade on Friday as the company got shareholders approval to de-merge it financial business into IDFC Bank.

The stock ended the day at Rs 176.20; up 2.26%, on the BSE.

IDFC Bank will begin operations from October 1 with 20 branches. The company has already got an approval for the same from Reserve Bank of India.

The existing shareholders of IDFC will each get shares of IDFC Bank even as they will continue to have stake in the holding company.

By issuing shares of the bank to existing shareholders, IDFC will comply in advance with RBI's mandate requiring the bank to be listed within three years of starting operations.

Rajiv Lal, Executive Chairman, IDFC in an interview to ET Now said, the bank will start operations with 20 branches and macro economic conditions will determine expansion of branches.

He is of the view that banking operations will be profitable from Day 1.

Mitesh Thacker, Technical Analyst, miteshthacker.com is of the view that IDFC should enjoy good momentum in next few sessions. It had a gap-up start and the gap can start a new trend in the stock.

"One can keep a stoploss of 172 for a target of Rs 188-190," he told ET Now.