IDFC First Bank said that its board 'noted the significant opportunities for growth of the bank based on the strong capabilities the bank has built and the strong outlook for economic recovery in India'
IDFC First Bank on Thursday said that its board has approved raising funds of up to ₹3,000 crore via securities.
"The Board at its meeting held today approved raising of funds for an amount aggregating up to ₹ 3,000 crore, in one or more tranches, on such terms and conditions as it may deem fit, by way of issuance of securities, through one or more permissible mode(s), including but not limited to a Private Placement, Qualified Institutions Placement, Follow-on Public Offering or a combination thereof, subject to shareholders’ approval through a Postal Ballot process and regulatory and other approvals, as may be required under applicable law," the Bank stated in a BSE filing.
It also said that its board "noted the significant opportunities for growth of the Bank based on the strong capabilities the Bank has built and the strong outlook for economic recovery in India."
On 15 February, 'to participate in strong upcoming growth opportunities that we are seeing", IDFC First Bank said that its board will meet on February 18, 2021 "to consider and approve the proposal for raising of funds by way of issue of equity shares/ other equity-linked securities".
The bank raised ₹2,000 crore through an institutional placement in June joining its larger rivals in tapping the markets. Lenders have been using the funds to bolster their bad loan buffers during the pandemic and prepare for faster growth once demand picks up.
On Thursday, the bank's scrip on BSE closed 3.01% higher at ₹58.10 apiece.
Meanwhile, the bank, which came into existence recently after the merger of IDFC Bank and Capital First, had recently reported a net profit of ₹130 crore for the third quarter ended on December 31, 2020.
It had reported a net loss of ₹1,639 crore for October-December period of 2019-20.
Total income during the quarter rose to ₹4,711.72 crore from ₹4,679.14 crore in the same period of the previous fiscal, the bank said in a regulatory filing.
The bank's asset quality improved as gross non-performing assets (NPAs) or bad loans reduced to 1.33 per cent of the gross advances as of December 31, 2020 as against 2.83 per cent by the same period a year ago.
Similarly, the net NPAs improved to 0.33 per cent from 1.23 per cent in the third quarter of previous fiscal.
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