IDFC Bank and Capital First have announced the completion of their merger to create IDFC First Bank.
The merge will create a combined loan asset book of Rs 1.03 lakh crore for the merged entity IDFC First Bank. In a joint statement, ‘IDFC Bank and Capital First merged effective 18th December 2018. The merged entity to be called IDFC First Bank, subject to shareholders’ approval. Following the merger, the board of IDFC Bank approved the appointment of V Vaidyanathan, founder and chairman of Capital First Ltd, as Managing Director and Chief Executive Officer of the merged entity. His appointment awaits shareholders’ approval.
Earlier in the day, the boards of IDFC Bank and Capital First met to take note of all requisite approvals and the order from National Company Law Tribunal; and approved the scheme of amalgamation. The board of IDFC Bank also approved the appointment of Rajiv Lall, Founder MD & CEO of IDFC Bank, as part-time non-executive chairman of IDFC First Bank, subject to approval from the RBI. The reconstituted board of the merged entity now stands expanded with the induction of five new directors. On a combined basis, IDFC First Bank has on-book loan assets of Rs 1,02,683 crore. The retail loan book will now contribute 32.46 per cent to the overall loan book.