Lack of succession plans pushing Shriram towards merger, say staff

Investors stand to gain as they will get exit route, stake in IDFC Bank

The proposed merger of Shriram group finance companies with IDFC has raised several questions inside the group. Shriram group insiders are questioning whether the merger is required at all considering cultural difference would be a major issue. They are also questioning why the Shriram group needs IDFC when it can become a bank on its own. They have attributed lack of proper succession planning as one of the key reasons behind the management wanting the merger.

Former and current executives of the group and a few investors have agreed that there are challenges in terms of cultural synergy, apart from