IDFC Bank Ltd. and Capital First Ltd. today announced the completion of merger following the approval of shareholders and regulators. The merged entity will be called IDFC First Bank, subject to shareholders’ approval.
V Vaidyanathan
V Vaidyanathan, Founder and Chairman of Capital First will be the Managing Director and Chief Executive Officer of the merged entity. He is an alumnus of Birla Institute of Technology and Harvard Business School and is a regular contributor on Financial and Banking matters in India and international forums.
The board of IDFC Bank also approved the appointment of Rajiv Lall, Founder MD and CEO of IDFC Bank, as Part-Time Non-Executive Chairman of IDFC First Bank.
The merged entity will now offer a wider array of retail and wholesale banking products, services and
digital innovations, to a greater number of customer segments. It will serve 7.2 million customers
through its 203 bank branches, 129 ATMs, 454 rural business correspondent centers across the
country’s urban and rural geographies.
The merger was announced on January 13, 2018, and as per the terms of the merger agreement, shareholders will receive 139 shares of IDFC Bank for 10 shares held in Capital First Ltd.
“The merger presents an incredible opportunity to strengthen our banking capabilities, operate as a larger universal bank and bring immense benefits to our customers,” said Vaidyanathan.
“We believe our complementary portfolio gives the combined entity access to high-growth customer segments. It enables us to enhance the lending platform and fast-track the building of the liability franchise, by offering customers a broader set of solutions,” he added.
On a combined basis, IDFC First Bank has on-book loan assets of Rs. 1,02,683 crore for the quarter ended September 30, 2018. The retail loan book will now contribute 32.46 percent to the overall loan book.
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