Private sector lender IDFC Bank and Capital First, a Non-Banking Financial Company has finally completed the procedure of its merger. The newly merged entity is christened as IDFC First Bank.
Post the merger, the combined entity has created a loan asset book worth Rs 1.03 lakh crore.
“IDFC Bank and Capital First merged effective 18th December 2018. The merged entity to be called IDFC First Bank, subject to shareholders’ approval,” said the joint communiqué shared by the merged companies.
After the merger, the board of IDFC Bank has cleared the appointment of V Vaidyanathan, founder and chairman of Capital First Ltd, as the new Managing Director and Chief Executive Officer of IDFC First Bank, the merged entity, confirmed the communiqué.
However, his appointment is awaiting a final nod from the shareholders.
“The board members of IDFC Bank and Capital First assembled for a meeting today to discuss on all requisite approvals and the order from National Company Law Tribunal; and approved the scheme of amalgamation,” the statement said.
The board of bank has also cleared the appointment of Rajiv Lall, Founder MD & CEO of IDFC Bank, as the new part-time non-executive chairman of IDFC First Bank.
The appointment is awaiting the approval from the Reserve Bank of India (RBI).
The newly formed board of the merged entity has introduced five new members to the board.
“IDFC First Bank will now offer a wider array of retail and wholesale banking products, services and digital innovations, to a greater number of customer segments,” added the communiqué.
IDFC First Bank will curtains to a customer base of 7.2 million via its 203 bank branches, 454 rural business correspondent centres and 129 ATMs located across the country both in the urban and rural geographies.
The amalgamation of IDFC Bank and Capital First was announced on January 13, 2018.