New generation private sector IDFC Bank and non-banking financial company Capital First announced completion of their merger Tuesday, creating a combined loan asset book of Rs 1.03 trillion for the merged entity IDFC First Bank.
Following the merger, the board of IDFC Bank approved the appointment of V Vaidyanathan, founder and chairman of Capital First Ltd, as Managing Director and Chief Executive Officer 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 reconstituted board of the merged entity now stands expanded with the induction of five new directors.
It will serve 7.2 million customers through its 203 bank branches, 129 ATMs, 454 rural business correspondent 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.
"The merger presents an incredible opportunity to strengthen our banking capabilities, operate as a larger universal bank and bring immense benefits to our customers," said V Vaidyanathan, MD & CEO of IDFC First Bank.
Infrastructure lender IDFC, which entered the banking space in 2015, has been on the lookout to grow its retail portfolio.
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.