IDFC receives RBI approval for starting banking operation; plans to function from Oct 1

New Delhi: Infrastructure financing firm IDFC Ltd today said the Reserve Bank of India (RBI) has granted banking licence to IDFC Bank for undertaking banking business in the country. “The RBI on July 23, 2015 has granted Banking Licence to IDFC Bank Limited for undertaking banking business in India under Section 22(1) of the Banking Regulation Act, 1949,” IDFC said in a stock exchange filing. [caption id=“attachment_2360990” align=“alignleft” width=“380”]  Reuters[/caption] IDFC and Bandhan Financial Services Pvt Ltd emerged successful out of 25 contenders for new bank licences issued by the Reserve Bank of India (RBI) in April last year. Bandhan Financial got RBI approval last month. IDFC Bank plans to start operation from October 1 with an initial loan book of around Rs 55,000 crore. The bank proposes to start operations with 20 branches. It has almost completed the process of demerger of financial undertaking into IDFC Bank. The demerger was in accordance with RBI conditions which require IDFC to transfer the relevant business activities to the proposed IDFC Bank. All new banks are to be set up through a non-operative financial holding company, according to the guidelines. IDFC Bank was established as a public limited company to carry out business of banking pursuant to approval granted by the Reserve Bank in April 2014. Shares of IDFC were trading at Rs 158.85, up 3.59 per cent on the BSE. PTI