Multibagger Stock Alert: IDFC First Bank Sells Mumbai BKC Office For Rs 198 Crore, CRISIL Assigns Rating

Mumbai-based IDFC First Bank will focus on stock exchanges as the private sector lender sold its BKC office in the country's financial hub for Rs 198 crore. NSDL is the buyer! Apart from this, CRISIL Ratings have assigned an 'AA+/Stable' rating to the Rs 3,000 crore Tier-II bonds, while reaffirming ratings on certificate deposits and tier-II bonds. The stock is currently a couple of rupees away from hitting a 52-week high.

BKC Property Sale:

As per the regulatory filing, IDFC First agreed with National Securities Depository Limited ("NSDL") for the sale of the Bank's office premises located at Naman Chambers, Bandra-Kurla Complex ("BKC"), Mumbai, as a part of the consolidation of the Bank's operations near its Corporate Office at IDFC FIRST Bank Tower (The Square), BKC, Mumbai.

The transaction was for a consideration of Rs 198 crore.

It said, "The title and ownership of the Office premises shall be transferred from the Bank to NSDL. The possession of the office premises will be handed over as mutually agreed between both parties."

Credit Ratings:

CRISIL has assigned it's CRISIL AA+/Stable' rating to the Rs 3,000 crore Tier-II bonds (under Basel III) of IDFC FIRST Bank Ltd (IDFC FIRST) and has reaffirmed its 'CRISIL AA+/Stable/CRISIL A1+' ratings on the other debt instruments.

The rating continues to be driven by steady scale-up of business, backed by strengthening of both retail asset and liability side franchise, improved asset quality, and expectation of continued improvement in operating and overall profitability. Furthermore, the ratings reflect the bank's healthy capitalisation level, CRISIL said in its rationale.

Over the medium term, Crisil added that the bank's capital position is expected to remain healthy while its earnings profile continues to improve.

It said, "The asset quality is also expected to remain stable but as the business continues to scale with higher focus on the retail segment, the bank's ability to sustain asset quality and profitability along with growth will remain a key monitorable."

Crisil will continue to monitor the progress on the announced amalgamation amongst IDFC Financial Holdings
Company Limit (IDFC FHCL), IDFC Ltd and IDFC First and its impending impact, if any, on the bank.

IDFC First Bank Share Price:

On Tuesday, IDFC First's share price ended at Rs 90.26 apiece, up by 0.24% on BSE. The stock was almost Rs 10 away from hitting its 52-week high of Rs 100.74 apiece on the exchange.

At the current market price, IDFC First's valuation is at Rs 63,677.19 crore.

From its 52-week low of Rs 51.30 apiece, IDFC First's share price has rallied nearly 76% as of now. In a span of 5-years, the stock has become a multi-bagger with an upside of over 148% on BSE.