Tag: IDFC Ltd

IDFC FIRST Bank debuts FIRST Private Infinite Card, India’s first standalone metal debit card, BFSI News, ET BFSI

Banking & Finance

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Mumbai (Maharashtra) [India], December 1 : IDFC FIRST Bank today announced the launch of FIRST Private Infinite, the country’s first-ever standalone metal debit card, in partnership with Visa, the global leader in digital payments.

FIRST Private Infinite is a lifetime free card designed specifically for customers who are part of the Bank’s FIRST Private program, a premium savings and wealth offering. The FIRST Private program offers an unrivalled banking and investment experience to customers and comes with a range of exceptional investment, banking, lifestyle and wellness benefits.

A statement black card, FIRST Private Infinite is crafted from hybrid metal with details etched in silver, created to deliver an exclusive payment experience. True to its top-of-the-line proposition, the benefits of FIRST Private Infinite debit card are specifically curated for premium cardholders and include complimentary domestic and international lounge access for cardholders and companions, unparalleled insurance coverage, a road assistance program and access to golf courses across the country.

Amit Kumar, Head – Retail Liabilities, IDFC FIRST Bank, said, “Metal cards are preferred by customers given their distinctive look and feel. Our FIRST Private Infinite debit card adds luxury and style to our customers’ payments experience. It is crafted to stand out fresh and aligns with the exclusivity of the FIRST Private program. As the industry’s first metal debit card, FIRST Private Infinite takes our cards portfolio to the next level of quality and excellence.”

T R Ramachandran, Group Country Manager, India and South Asia, Visa said, “At Visa, we are delighted to partner with IDFC FIRST Bank on their affluent debit proposition – the FIRST Private Metal debit card. A set of carefully curated benefits and experiences across travel, health & insurance, dining, entertainment and lifestyle, coupled with the power and promise of the Visa network and brand, is sure to resonate with affluent Indian consumers and households. We eagerly look forward to the launch and scale-up of this innovative card offering.”

IDFC FIRST Bank offers a comprehensive digital savings account solution that includes a seamless online account opening process, video KYC and a new age digital platform for mobile and netbanking with easy-to-navigate user interface. The Bank’s digital wealth management solutions are available to customers on the mobile app and netbanking platform which offer unique features such as a ‘Consolidated Investment Dashboard’.

Created in 2018 by the merger of renowned infrastructure financing institution IDFC Ltd. and leading technology NBFC, Capital First, IDFC FIRST Bank, with a balance sheet of Rs. 1,72,502 crore, has provided over 30 million loans in its combined history and serves customers in over 60,000 villages, cities and towns across the length and breadth of the country. In a short time, the Bank has expanded to 599 branches, 185 asset service centres, 720 ATMs including 99 recyclers and 630 rural business correspondent centres across the country, a next-generation net and mobile banking platform and 24/7 Customer Care services, and is incrementally growing digitally. IDFC FIRST Bank is committed to bring high-quality banking at affordable rates to India. The Bank also offers technology-enabled corporate banking solutions.



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IDFC Ltd registers ₹262.55 cr consolidated net profit in Q2

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IDFC Ltd reported a turnaround performance, posting ₹262.55 crore consolidated net profit in the second quarter against a loss of ₹146.68 crore in the year-ago period.

The profitability was buoyed as the company received ₹200 crore as its share of profit from its associates and joint ventures. The company had incurred a loss of ₹169 crore under this head in the year-ago period. The consolidated profit before tax was higher at ₹84.57 crore (₹35.84 crore in the year-ago period).

IDFC Ltd is an investing company of the IDFC group. The company has its investments in subsidiaries and associates of the group.

Merger scheme approval

The Board of Directors of IDFC Ltd, as part of the simplification of the corporate structure, approved the merger scheme of IDFC Alternatives Ltd, IDFC Trustee Company Ltd and IDFC Projects Ltd (wholly-owned subsidiary companies) into IDFC Ltd – subject to regulatory approvals from various authorities as applicable.

RBI has, vide its letter dated July 20, 2021, clarified that after the expiry of the lock-in period of five years, IDFC Ltd can exit as the promoter of IDFC FIRST Bank, as per the notes to accounts.

The Board of Directors of IDFC and IDFC Financial Holding Company, at their respective meetings held on October 21, 2021, had appointed Citigroup Global Markets India Pvt Ltd as an investment banker for the disinvestment of IDFC Asset Management Company, according to the notes.

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IDFC board approves divestment of mutual fund business

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The Board of Directors of IDFC Ltd and IDFC Financial Holding Company Ltd (IDFC FHCL) at their meetings held on Friday considered and approved to initiate steps to divest the mutual fund business — IDFC Asset Management Company (IDFC AMC) Ltd.

IDFC AMC is the direct subsidiary of IDFC FHCL and indirect subsidiary of IDFC. As on March 31, 2021, IDFC held 99.96 per cent in IDFC AMC.

IDFC AMC’s average assets under management (AAUM) for the June quarter was at ₹1,26,070 crore, as per AMFI data.

IDFC, in a regulatory filing, said the disinvestment is subject to requisite regulatory approvals, as applicable.

The Boards have authorised respective Strategy & Investment Committees to take necessary steps, including appointment of Investment Banker, for the same, as per the filing.

IDFC losing investor confidence over delay in value unlocking

Investors upset

At a pre-annual general meeting conference call held on September 14, investors expressed disappointment with the slow pace of progress of the disinvestment.

While one investor wanted IDFC to immediately divest its stake in its asset management company (AMC), failing which he said he will reach out to other investors to seek a change in management; another investor, referring to the performance of the stock, alleged value destruction for shareholders.

RBI approves re-appointment of Vaidyanathan as IDFC FIRST Bank chief

Vinod Rai, Non-Executive Chairman, IDFC, explained that it has taken the company the last 3-4 years to try and simplify the entire corporate structure and it has managed to remove all the other entities, except the Bank, AMC and the Foundation.

“Now, what we are grappling with today is the IDFC Foundation. It has two joint ventures under it — one is with the Government of Delhi and another is with the Government of Karnataka.”

In his statement to the shareholders in the latest annual report, Rai observed that in pursuit of creating maximum value for shareholders, over the last few years the Board has been focused on cleaning up the corporate structure of the IDFC Group, while awaiting the expiry of the 5-year lock in period for the Group as promoter of IDFC FIRST Bank.

The Reserve Bank of India vide their letter dated July 20, 2021, has clarified that after expiry of the ‘lock in’ period of five years, IDFC can exit as promoter of IDFC FIRST Bank.

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IDFC reverse merger in IDFC First Bank likely as RBI allows exit, BFSI News, ET BFSI

Banking & Finance

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The Reserve Bank of India had allowed IDFC to exit the IDFC First Bank.

In a regulatory filing, IDFC said that the RBI on July 20 clarified that “after the expiry of lock-in period of five years, IDFC Ltd can exit as the promoter of ‘IDFC FIRST Bank Ltd”.

Accordingly, the company can now exit as the promoter of IDFC First Bank, as the five year lock-in period has ended.

The IDFC Bank was created by the demerger of the infrastructure lending business of IDFC to IDFC Bank in 2015.

The RBI clarification could potentially lead to a reverse merger, which would be beneficial to IDFC Limited shareholders by increasing shareholder value.

Reverse merger

IDFC First Bank, which started operations in October 2015, completed five years on September 30, 2020. Under the rules then, a non-operating financial holding company, IDFC Financial Holding Co Ltd was mandated to hold a minimum of 40% of the paid-up capital of the bank for five years. IDFC holds 100% stake in the holding company, and in turn 36.56% in the bank.

The board may consider a reverse merger between IDFC and the bank, and collapse the holding company structure.

An application would have to be submitted for such a reverse merger. The RBI had mandated a holding company structure to ring-fence the bank from other financial services businesses of the group. A reverse merger, which has been in talks, would be beneficial to the shareholders of IDFC as it would remove the holding company discount. While the 2013 rules mandated it, in the 2016 guidelines for “on-tap” bank licensing, the RBI had not sought the requirement of holding a company for promoter if there are no other group entities.

IWG suggestions

The RBI’s internal working group on ownership of private banks had also recommended allowing banks, currently under holding company structure, to exit if they do not have other group entities. Recently, the RBI allowed Equitas Small Finance Bank and Ujjivan Small Finance Bank to apply for the merger of the holding company with the bank.

While the suggestions of the internal working group have not yet been implemented, the regulations are clear in terms of the holding company quitting only if it has no other organisations in its fold, paving an alternative road to departure for corporations like IDFC.



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