IDFC First Bank Share Price in Focus: CEO Gifts 7 Lakh Shares to Unrelated Individuals

IDFC First Bank is set to draw attention in Friday's trading session after its Managing Director. V. Vaidyanathan has made headlines by gifting 7,00,000 equity shares of the company held by him on 21 March to five individuals who are not related to him without receiving anything in return.

Details of the Transaction

In a filing with the stock exchange, IDFC First Bank disclosed that Vaidyanathan gifted a total of 7,00,000 equity shares of the company on 21 March. This transfer done without any consideration, amounting to over ₹5.44 crore based on the closing price of the shares as of Thursday. According to the company's regulatory filing, Vaidyanathan gifted 50,000 shares to Sameer Mhatre to help with house purchase and 75,000 shares to Mayank Mrinal Ghosh for financial support due to a colleague's passing.

Additionally, Wg. Cdr. (Rtd.) Sampath Kumar received 2,50,000 IDFC First Bank shares from the MD & CEO as assistance for being a senior citizen and providing earlier support in life. Vaidyanathan also gave 2,75,000 shares to A Kanojia for house purchase aid and 50,000 shares to a friend named Manoj Sahay.

IDFC First Bank has clarified that these transactions have no direct or indirect benefits accruing to V. Vaidyanathan. The bank reiterated that these actions were solely driven by altruistic motives.

This isn't the first time Vaidyanathan has exhibited such generosity. In March 2022, he gifted 5 lakh shares to the kin of a deceased colleague. Additionally, earlier in 2022, shares worth ₹4 crore were gifted to his trainer, house help and driver. Furthermore, in October 2020, shares worth ₹30 lakhs were given to a former school teacher.

IDFC First Bank Financial Performance

Despite recent fluctuations in its share price, IDFC First Bank continues to show robust financial performance. In the quarter ended December 2023, the bank reported a net profit of ₹715 crore, marking an 18.4% increase compared to the corresponding period in the previous year. Moreover, the bank's net interest income witnessed a surge of 30.5% yoy reaching ₹4,286.6 crore from ₹3,284.3 cr yoy.

IDFC First Bank's customer deposits have seen a rise recording a 42.8% yoy increase to ₹1,76,481 crore as of December 31, 2023. CASA Deposits rose by 28.6% yoy to ₹85,492 crore, with a CASA Ratio standing at 46.8%.

Despite a 12% drop in IDFC First Bank shares this year, it has given 39% to its investors over the past twelve months.