IDFC First Bank CEO gifts 7 lakh equity shares to 5 unrelated individuals

IDFC First Bank disclosed in a stock exchange filing that its Managing Director & CEO V. Vaidyanathan gave away 7,00,000 company shares held by him to five individuals on March 21, without receiving any payment.

IDFC First Bank stated that the recipients have no relationship with him as defined by the Companies Act or SEBI Regulations. These transactions were made without any payment.

Based on Thursday’s closing price, the total value of the gifted equity shares exceeds ₹5.44 crore.

According to the company’s regulatory filing, Vaidyanathan gifted 50,000 shares to Sameer Mhatre to assist with house purchase and 75,000 equity shares to Mayank Mrinal Ghosh as financial support for kin affected by a colleague’s passing.

Furthermore, Wg. Cdr. (Rtd.) Sampath Kumar received 2,50,000 IDFC First Bank shares from the MD & CEO as support for being a senior citizen who provided assistance earlier in life.

Vaidyanathan also gifted 2,75,000 shares to A Kanojia to assist with house purchase and 50,000 shares to a friend named Manoj Sahay.

IDFC First Bank stated that Mr. V. Vaidyanathan did not receive any direct or indirect benefits from these transactions.

IDFC First Bank’s share price has dropped over 12% year-to-date (YTD), but has surged more than 39% over the past twelve months.

For the quarter ending December 2023, the private sector lender recorded a net profit of ₹715 crore, marking an 18.4% increase from ₹604.6 crore in the same period last year. The bank’s net interest income (NII), which represents the difference between interest earned and interest expended, rose by 30.5% to ₹4,286.6 crore in Q3FY24 compared to ₹3,284.3 crore in the previous year.

As of December 31, 2023, IDFC First Bank witnessed a 42.8% year-on-year increase in customer deposits, totaling ₹1,76,481 crore. Additionally, CASA Deposits grew by 28.6% year-on-year to ₹85,492 crore, with the CASA Ratio reaching 46.8%.

On Thursday, shares of IDFC First Bank closed at ₹77.80 each on the BSE, up 1.91%.

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