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Capital First-IDFC merger creates IDFC First Bank; V Vaidyanathan to be CEO

The merger will serve 7.2 million customers through its 203 bank branches, 129 ATMs, 454 rural business correspondent centres across the country

Press Trust of India  |  New Delhi 

IDFC Bank
IDFC Bank

New generation private sector and financial company announced completion of their merger Tuesday, creating a combined loan asset book of Rs 1.03 trillion for the merged entity IDFC

"and merged effective 18th December 2018. Merged entity to be called IDFC First Bank, subject to shareholders' approval," the firms said in a joint statement.

Following the merger, the board of approved the appointment of V Vaidyanathan, founder and of Ltd, as of the merged entity, said the statement.

His appointment awaits shareholders' approval.

Earlier in the day, the boards of IDFC Bank and Capital First met to take note of all requisite approvals and the order from National Company Law Tribunal; and approved the scheme of amalgamation, the statement said.

The board of IDFC Bank also approved appointment of Rajiv Lall, Founder MD & of IDFC Bank, as part-time non-executive of IDFC First Bank, subject to approval from the RBI.

The reconstituted board of the merged entity now stands expanded with the induction of five new directors.

"IDFC will now offer a wider array of retail and wholesale products, services and digital innovations, to a greater number of customer segments," it added further.

It will serve 7.2 million customers through its 203 bank branches, 129 ATMs, 454 rural business centres across the country's urban and rural geographies.

The merger between the two entities was announced on January 13, 2018. As part of the merger agreement, shareholders will receive 139 shares of IDFC Bank for each 10 shares held of Warburg Pincus-backed Capital First.

On a combined basis, IDFC has on-book loan assets of Rs 1 trillion. The will now contribute 32.46 per cent to the overall loan book, said the statement.

"The merger presents an incredible opportunity to strengthen our capabilities, operate as a and bring immense benefits to our customers," said V Vaidyanathan, MD & of

Infrastructure lender IDFC, which entered the banking space in 2015, has been on the lookout to grow its retail portfolio.

In July 2017, IDFC Bank had entered into an agreement with Piramal Group-backed for a merger.

However, the deal was later called off in October (2017) as both the entities could not reach a common ground on the share swap ratio.

Stock of IDFC Bank closed 4.71 per cent higher at Rs 41.10 on BSE, Capital First closed 5.13 per cent up at Rs 567.80 apiece.

First Published: Tue, December 18 2018. 22:20 IST
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