Shares in IDFC fell 3 per cent after the company reported lower than expected net profit. The stock of the company was down 3 per cent in trade at Rs 110.85.
IDFC posted a 50.9 percent decline in net profits, way below analysts estimates, with profit for the quarter ended March 31, 2014 at Rs 258 crore as against Rs 526 crore on a year-on-year basis.
The total income of the infrastructure finance company fell to Rs 2,205 crore as compared to Rs 2,217.5 crore in the same period of the previous fiscal year.
IDFC is among the two institutions that have received a banking license and the company is expected to begin the process after receiving an approval from the RBI recently.
Though the stock was down 3 per cent analysts believe that there maybe limited downside risk given the premium the institution is likely to receive on account of a banking license.
IDFC is among the top infrastructure financial institutions in the country.