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Year of reckoning: IDFC First Bank has a retail edge with V Vaidyanathan

V Vaidyanathan is a retail veteran having been retail head at ICICI Bank

Anup Roy 

V Vaidyanathan
Vaidyanathan, Capital First

On December 18, completed its merger with to form IDFC First Bank. V Vaidyanathan, founder chairman of Capital First, will be the managing director and chief executive officer of the merged entity that will start operations with a combined loan book of Rs 1.03 trillion.

was carved out of the erstwhile term-lending institution IDFC Ltd. in October 2015, being one of two entities to get a full-service bank licence from the Reserve Bank of India (RBI) in a decade. But the bank had a bloated balance sheet from legacy term loans, which it wanted to grow out of through aggressive retail lending. It acquired a large micro-firm, and had wanted to merge with the Shriram Group in 2017, but the deal did not work out.

ALSO READ: With merger complete, IDFC First Bank commences business on Wednesday

The bank’s first CEO Rajiv Lall did not have enough experience in retail lending. Vaidyanathan, on the other hand, is a retail veteran having been retail head at ICICI Bank.

First Published: Wed, December 26 2018. 23:54 IST