Mumbai: IDFC Ltd shares gained as much as 3.8% on Friday after the company’s managing director said that the bank unit will begin operations from October.

IDFC Bank will start operation from 1 October with an initial loan book of around 55,000 crore, Rajiv Lall, managing director of IDFC, tells CNBC TV 18.

Each IDFC shareholder will get 1 share of IDFC Bank, Lall added.

IDFC shareholders on Friday approved the demerger of its financial undertaking into IDFC Bank. With this approval, most of IDFC-to-IDFC Bank conversion process has been completed. An approval from the Reserve Bank of India (RBI) has already come through, the company said.

Shares of IDFC were trading 2.15% higher at 176 apiece at 11:30am on Friday. Reuters