Company Profile: IDFC The bank’s parent is the Public Financial institutions; the others are LIC, ICICI, and IDBI IFCI UTI. It incorporated the recommendations of the ‘Expert Group on Commercialization of Infrastructure Projects under the Chairmanship of Dr. Rakesh Mohan. The group is conceptualized to channel private capital into commercially viable projects. As per the recommendation, IDFC was incorporated on 30 January 1997 with its registered office in Chennai and started operations on 9 June 1997. In 1998 the company registered with the Reserve Bank of India (RBI) as a non-banking financial company, and in 1999 it formally became a Public Financial Institution. In 2013 when RBI decided to give a banking license, IDFC was among 26 applications.
With the 23 Branches, The bank launched itself on 1 October 2015. The bank is listed on BSE and NSE.
As the parent is related to Infrastructure Finance, the bank also concentrates on Infrastructure. Before the Demerger, there was a 4*4 plan. Which is very big and suitable even for banks as Transportation, Telecommunications and, IT, energy are still crucial for growth.
As per RBI rules, The bank needs to Keep around 40% of business in rural areas. IDFC Bank is doing that by acquiring Grama Vidyal Microfinance.
Share Holding Pattern
Financials and Ratio
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Future Prospects: Though it is difficult to make any statement about its future, I am trying with the help of the past of IDFC.
IDFC, Infrastructure Development Finance Corp, the bank’s parent, was enjoying the relationship with the Industry even before receiving a banking license. So there was a loan book but not a full-fledged Universal Commercial Banking License, which is now with them.
Maybe it’s difficult for them to fulfill the requirements of RBl like CRR and SLR, But the technology is very positive for them. Recently they came up with Online FD, which pays little higher interest than others. Good move.
As Leadership is crucial for banks, there is good Leadership in banks. Even though it looks like Private Bank, the government of India still holds around a 7.5% stake. Which it may sell. Acquiring or hiring a workforce and setting up branches are challenging tasks for banks, but there are also some positives. Like Online banking.
So many people are calling it the Next HDFC Bank in the making, Maybe. As for both, the parent institution, Leadership, and contact with the Industry are a plus. But HDFCBANK has changed itself into a retail focus. Right now, there is Big demand for infrastructure funding, and IDFC Bank can Fulfill it.
