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IDFC Bank to be renamed as IDFC First Bank

Oct 26, 2018 10:54 IST
IDFC Bank to be renamed as IDFC First Bank

IDFC Bank on October 25, 2018 proposed to change its name to 'IDFC First Bank Ltd' in the wake of its amalgamation with the non-banking financial company Capital First. The decision was taken during the meeting of the Board of Directors of IDFC Bank.

The proposal now needs the approval of the Reserve Bank of India (RBI). It would further require the approvals of statutory or regulatory authorities including the Registrar of Companies, Shareholders and other Stakeholders.

Amalgamation of Capital First with the IDFC Bank

  • The Amalgamation of Capital First with the IDFC Bank is presently at an advanced stage and has received approvals from the Competition Commission of India, stock exchanges, RBI, shareholders and creditors of all the parties involved.
  • However, the amalgamation awaits the approvals from the National Company Law Tribunals.
  • With this merger, Warburg Pincus-backed Capital First and IDFC Bank, in an all-stock deal, would create Rs 88000-crore combined entity.
  • The share swap ratio for the merger is fixed at 139:10. The IDFC Bank will issue 139 shares for every 10 shares of Capital First.
  • After the merger, V Vaidyanathan, Chairman and Managing Director of Capital First, will succeed Rajiv Lall as the MD and CEO of the combined entity. Rajiv Lall will step into the role of Non-Executive Chairman of IDFC Bank and guide the transition process.

IDFC Bank

IDFC had applied for a banking licence in 2013 and got in-principle approval from the RBI in 2014.

IDFC Bank was officially inaugurated by Prime Minister Narendra Modi in 2015.

Started its operations on October 1, 2015, the bank has its headquarters in Mumbai and forms a part of IDFC, an integrated infrastructure finance company.

IDFC

IDFC was incorporated on January 30, 1997. It founded as a non-operative financial holding company (NOFHC) in 2014. It manages its five subsidiaries - IDFC Bank, IDFC MF, IDFC Alternatives, IDFC IDF & IDFC Securities as per the RBI guidelines.

 

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