After getting new bank licence, IDFC says will build banking network brick-by-brick

Written by fe Bureau | Mumbai | Updated: Apr 4 2014, 01:32am hrs
IDFCRBI has given in-principle approval to banking licences for IDFC, alomg with Bandhan Fin.
Incorporated in 1997 on the recommendations of the Expert Group on Commercialisation of Infrastructure Projects under the chairmanship of Rakesh Mohan, IDFC Ltd , which received a new bank licence from RBI, has business verticals which include corporate investment banking, alternative asset management, public market asset management and the IDFC Foundation.

Also read:Bandhan Financial, IDFC win banking licences

IDFC, one of the largest infrastructure finance company providing end-to-end infrastructure financing and project implementation services, on Tuesday received in-principle approval from the RBI to set up banks.

The company is headed by Rajiv Lall who has about three decades of experience with leading global investment banks, multilateral agencies and in academia.

We will be a universal bank and, thus, look at retail loans too, said Rajiv Lall, executive chairman, IDFC.

At present, the company has 600 people on its rolls in four branches. It has ruled out growing its business inorganically. Lall said the company is not short on capital and has R2,100 crore as on December 31, 2013. The hard work will begin now and we will build our network brick-by-brick, he said.

Since 2005, IDFC has built on its vision to be the one firm that looks after the diverse needs of infrastructure development.

As on December 31, 2013, the company had a loan book of R54,552 crore and its networth stood at R15,250 crore. Its capital adequacy stood at 24.8% (of which Tier-I was 22.5%) and its net interest income was R2,036 crore at the end of the December quarter.

IDFC's growth has been driven by the substantial investment requirements of the infrastructure sector in India, combined with the growth in the Indian economy over the last several years. The largest shareholders include government of India (17.2%), followed by Sipadan Investments (Mauritius) at 10%, LIC at 6.8% and RBS at 6.4%.

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