IDFC First Bank board favours merger with promoter entities

IDFC First Bank on Thursday said its board has favoured the merger IDFC Ltd and IDFC Financial Holding Co Ltd (promoter group) with the bank.

The board of directors of the bank in a meeting held on December 30, 2021, considered the proposal for merger of IDFC Ltd and IDFC Financial Holding Co Ltd (promoter group) with IDFC First Bank, the bank said in a regulatory filing.

"We are, in principle, in favour of the merger, subject to the approval of the board of directors, shareholders, creditors and statutory and regulatory approvals of the respective entities," the bank said in a regulatory filing.

The private sector lender said the board has constituted and authorised a committee -- Capital Raise and Corporate Restructuring Committee -- to work on the terms of the proposed merger.

This will include finalisation of the scheme, valuation, hiring advisors among others.

Earlier in July, the Reserve Bank of India allowed IDFC Ltd to exit as the promoter of IDFC First Bank as the five year lock-in period ended, and paved the way for a potential reverse merger between two entities.