National Housing Bank (NHB) has given final approval to Capital First for its merger with IDFC Bank. The ally would be initiated between Capital Home Finance and Capital First Securities Limited with IDFC Bank.
“We would like to inform you that the National Housing Bank (NHB) has vide its letter dated February 19, 2018, intimated that NHB has no objection to the aforesaid amalgamation subject to its compliance with the applicable provisions of relevant acts, rules, regulations, etc in the matter,” said Capital First.
Earlier this month, the firm had announced the approval of this merger by its board of directors with IDFC Bank Limited.
Capital First Home Finance Limited and Capital First Securities Limited (collectively, the ‘Amalgamating Companies’) are now awaiting its final approval from the Reserve Bank of India and other statutory and regulatory bodies.
With this merger, the bank is set to create Rs 88,000-crore combined entity. The new entity will offer a distribution network consisting of 194 branches, 353 dedicated banking correspondent outlets, more than 9,100 micro ATM points, and will be catering to over 5 million customers.
Capital First is a non-banking financial company supported by US-based PE firm Warburg Pincus. The merger is most likely to complete in the next two-three quarters.