The merger of Capital First, a finance company, with private sector lender IDFC Bank is now complete, following requisite shareholder and regulatory approvals.
The merged entity, to be called IDFC First Bank and headquartered in Mumbai, will commence business from Wednesday. V Vaidyanathan will be the managing director and chief executive officer of the merged entity. Rajiv Lall is part-time non-executive chairman, subject to Reserve Bank of India approval.
The reconstituted board of the merged entity has been expanded, with five new directors. One, Vishal Mahadevia, is a non-executive and non-independent director. The other four new ones are all independent directors -- Brinda Jagirdar, Hemang Raja, Aashish Kamat and Desh Raj Dogra.
On a combined basis, IDFC First Bank has on-book loan assets of Rs 1.02 trillion, according to the reported financial results for the quarter ended September 30. Retail loans (to non-corporate borrowers) are 32.46 per cent of the overall loan book. There would be 7.2 million customers, 203 bank branches, 129 ATMs and 454 rural business correspondent centres.
The merger was announced on January 13 this year. By the terms, shareholders would get 139 shares of IDFC Bank for every 10 of Capital First Ltd. IDFC Bank has approved December 31 as the 'record date' for determining the portfolio of non-convertible debenture holders of Capital First.