IDFC First Bank CEO V Vaidyanathan sells shares worth Rs 58 cr to close loan availed by him

New Delhi: IDFC First Bank on Friday said its Managing Director and Chief Executive Officer V Vaidyanathan has sold 2.75 crore shares for approximately Rs 58 crore to close ESOP loan availed by him.

Vaidyanathan intends to sell about Rs 35 crore worth of stocks on Friday to entirely repay the residual Employee stock option plan (ESOP) loan taken for exercising his ESOP shares to release his pledged shares, IDFC First Bank said in a filing to BSE.

.@IDFCFIRSTBank's MD, CEO speaks to CNBC-TV18 after selling ESOPs today. Here's what he has to say pic.twitter.com/rW49O1EDNq

— CNBC-TV18 (@CNBCTV18Live) March 20, 2020

“We have received an intimation from V Vaidyanathan, Managing Director and Chief Executive Officer of the Bank that he has sold 2,75,58,412 shares on 19th March 2020 for approximately Rs 58 crore to close ESOP loan availed by him,” IDFC First Bank Ltd said.

“He has explained that with this sale he will have nil ESOP loan, and will not need to sell any more shares in the foreseeable future,” IDFC First Bank said.

“I would like to clarify that I still hold 4,23,47,144 shares (0.88 percent) after yesterday’s (Thursday) sale,” Vaidyanathan said in an intimation to Compliance Officer.

“The prices of the stock has come down recently due to the coronavirus related development in the stock market across all sectors including all banks which resulted in margin call, and at this stage I decided to sell the stock to entirely square the ESOP loans. With the sale of Rs 35 crores expected today, my loans against shares will be nil. I have no other loans other than a home loan,” he said.

The shares of IDFC First Bank were trading at Rs 21.15 a piece on BSE, up 2.42 percent from the previous close.