Cloverdell Investment likely to sell its entire 2.25% stake in IDFC FIRST Bank

US-based private equity firm Warburg Pincus' affiliate, Cloverdell Investment, is likely to sell its entire stake in private sector IDFC FIRST Bank Ltd, sources privy to the development told CNBC-TV18.

The investment firm is expected to offload its 2.25% equity in the bank through block deals, sources told CNBC-TV18.

The offer size for the stake sale is estimated to be around ₹1,191.4 crore, with a floor price set at ₹75 per share, sources close to the development said.

IDFC FIRST reported an 18.4% year-on-year (YoY) jump in net profit at ₹715.7 crore for the third quarter that ended December 31, 2023. In the corresponding quarter last year, IDFC First Bank posted a net profit of ₹604.6 crore.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, jumped 30.5%, coming at ₹4,286.6 crore against ₹3,284.3 crore in the corresponding quarter of FY23.

The gross non-performing asset (GNPA) stood at 2.04% in the December quarter against 2.11% in the September quarter. Net NPA came at 0.68% against 0.68% quarter-on-quarter. The net interest Margin was 6.42% in Q3 of FY24 as compared to 6.13% in Q3 of FY23 and 6.32% in Q2 of FY24.

Shares of IDFC First Bank Ltd ended at ₹77.81, up by ₹0.100, or 0.13% on the BSE.