IDFC First Bank MD & CEO V Vaidyanthan has sold shares worth ₹58 crore on March 19 and another ₹35 crore worth shares on March 20 to close an ESOP loan
“I would like to inform that I sold 2,75,58,412 shares yesterday to close the ESOP loan availed by me to acquire the shares and I intend to sell about ₹35 crore worth of stocks today (March 20) to entirely repay the residual ESOP loan taken for exercising my ESOP shares and to release the pledged shares. I would like to clarify that I still hold 4,23,47,144 shares (0.88%) after yesterday’s sale,” Mr. Vaidyanathan informed the bank’s compliance officer. The statement was shared by the bank with exchanges on Friday. “The prices of the stock have come down recently due to the COVID-19-related developments in stock markets across all sectors, including all banks which resulted in a margin call, and at this stage, I decided to sell the stock to entirely square off the ESOP loans. With the sale of ₹35 crore expected today, my loans against shares will be NIL,” he said. “I have no other loans other than a home loan,” he said in the communication which was shared with the exchanges on Friday.
He also added that the bank is building a strong trajectory of growth of branches, strong growth in retail loans, sharp improvement in CASA, with low NPA and high capital adequacy.
“All our trajectory is strongly positive across all parameters. Hence, I deeply regret sale of shares at this growth stage of our bank given the wonderful prospects, but I had to do the same to square the ESOP loan. I believe there will be no need for me to sell any more shares in the foreseeable future,” he added.