IDFC Bank-Capital First merger takes effect

Mumbai : Private sector IDFC Bank announced that the lender's merging of non banking finance company (NBFC) Capital First with it has become effective on Tuesday following the lodging of the relevant NCLT order with the Registrar of Companies.

An IDFC stock exchange filing also said following the regulator's approval, the bank board has appointed V. Vaidyanathan as the MD and CEO of the bank with effect from December 19, 2018, in place of Rajiv B. Lall.

The board also approved the appointment of Rajiv B. Lall as the part-time non-executive Chairman of IDFC Bank with effect from December 19, 2018, subject to Reserve Bank of India (RBI) approval.

The National Company Law Tribunal (NCLT) last week approved the amalgamation of Capital First, Capital First Home Finance and Capital First Securities with IDFC Bank.

"The approval of the RBI has been received for change of name of the Bank from IDFC Bank Ltd to IDFC First Bank Ltd," the filing said.

"However, the new name will be effective after receipt of approvals from the shareholders of IDFC Bank and the Central government."

The merged entity will have an authorised share capital of Rs 5,363 crore, the filing added.

Making the merger announcement in January, IDFC Bank said that it was in line with its stated strategy of "retailising its business to complete their transformation from a dedicated infrastructure financier to a well diversified universal bank, and in line with Capital First's stated intention and strategy to convert to a universal bank".

The combined entity of IDFC Bank and Capital First will have 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 ATM points, serving more than five million customers across the country.