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IDFC Bank, Capital First announce merger

Press Trust of India  |  Mumbai 

and non-financial company Capital First today said they have received approval from their respective boards for a

Under the deal, will issue 139 for every 10 of Capital First.

"We believe this will be transformational for It will bring two tech savvy, culturally aligned platforms to come together to create a diversified and fast growing with a national footprint, in a manner that will be value accretive for all shareholders," Managing Director and said in a statement.

Capital First brings with it a with a loan book of Rs 22,974 crore (September 2017), a live customer base of three million; and a distribution network in 228 locations across the country, the statement added.

It is growing at a five-year CAGR of 27 per cent in assets under management (AUM) and 40 per cent in profits, with gross and net NPA at 1.63 per cent and 1 per cent, respectively.

Post-merger, the combined entity will have an AUM of Rs 88,000 crore; PAT of Rs 1,268 crore (FY17); and a distribution network comprising 194 branches (as per branch count of December 2017 of both entities), 353 dedicated BC outlets and over 9,100 micro points, serving more than five million customers across the country.

V Vaidyanathan, who is currently and MD of Capital First, will succeed Lall as MD and of the combined entity upon completion of the and necessary regulatory approvals.

Post-merger, Lall will step into the role of non- executive of IDFC Bank, subject to regulatory approvals. He will replace Veena Mankar, who will remain on the board.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, January 13 2018. 15:10 IST