IDFC Bank and Capital First, on Tuesday, announced the completion of merger after receiving all requisite shareholder and regulatory approvals.
“The merged entity will be called IDFC First Bank, subject to shareholders’ approval,” said an official statement.
Following the merger, the board of IDFC Bank has approved the appointment of V Vaidyanathan, Founder and Chairman of Capital First, as Managing Director and Chief Executive Officer of the merged entity.
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 reconstituted board of the merged entity now stands expanded with the induction of five new directors,” the release said.
In his initial comments, Vaidyanathan said: “The merger presents an incredible opportunity to strengthen our banking capabilities, operate as a larger universal bank, and bring immense benefits to our customers.”
He further noted that the 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 said.
IDFC First Bank will serve 72 lakh customers through its 203 bank branches, 129 ATMs and 454 rural business correspondents, and will offer a much wider array of products.
On a combined basis, IDFC First Bank has on-book loan assets of ₹1,02,683 crore for the quarter ended September 30, 2018. The retail loan book will now contribute 32.46 per cent to the overall loan book.