IDFC to apply for final bank licence today

Move comes on back of Madras HC's approval for demerger of IDFC and IDFC Bank on June 29

IDFC, which had received in-principle approval from the Reserve Bank of India (RBI) last year to set up a bank, will apply for a final approval on Friday. The move comes on the back of the Madras High Court’s approval for the demerger of IDFC and IDFC Bank on June 29.

IDFC, the infrastructure financier which is a listed entity, will have to transfer all its assets and liabilities to the banking entity. IDFC Bank will also be listed from the day it starts operation. IDFC’s asset size was at Rs 54,745 crore as on March 2015.

While Rajiv Lall will be the vice-president and chief executive officer of IDFC Bank, Anil Baijal, former Union home secretary, will be the non-executive chairman.

In April 2014, RBI gave in-principle approval to micro lender Bandhan and IDFC to set up banks. According to norms, these entities have to start banking operations within 18 months, that is, by October 2, 2015. Bandhan had received the final approval last month and will start operations by the end of August.