IDFC shares rally after RBI grants it banking licence

IDFC shares rose over 6 per cent after RBI granted the infrastructure financing firm banking licence. The company plans to start operation from October 1.

Written by FE News Desk

Updated: July 24, 2015 16:28 IST

Every single PSB, including the country's largest lender State Bank of India (SBI), trades at below its estimated book value for both FY16 and FY17, Bloomberg data shows.

IDFC shares surged on Friday after RBI granted the infrastructure financing firm banking licence. The company plans to start operation from October 1.

The shares ended 2.58 per cent up on BSE. On NSE, the shares closed up 2.64 per cent.

Following the news, shares of the company jumped 6.61 per cent to Rs 163.50 at BSE.

“The RBI on July 23, 2015 has granted Banking Licence to IDFC Bank Limited for undertaking banking business in India under Section 22(1) of the Banking Regulation Act, 1949,” IDFC said in a stock exchange filing.

Analysts said getting banking licence is seen positive for IDFC as the company has been in the infrastructure space where things are not moving as quickly.

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This article was first uploaded on July twenty-four, twenty fifteen, at forty-seven minutes past twelve in the night.