IDFC says can exit as promoter of IDFC First Bank since five-year lock-in period over

Our Bureau Updated - July 21, 2021 at 07:38 PM.

As on June 30, 2021, IDFC Financial Holding Company holds 36.56 per cent stake in IDFC First Bank

Pedestrians wearing protective masks walk past an IDFC First Bank Ltd. branch on a near-empty street in Mumbai, India, on Monday, May 4, 2020. India's central bank Governor Shaktikanta Das and the chief executive officers of the nation's banks have discussed ways to ensure credit flow to businesses once the world's toughest stay-at-home order ends. Photographer: Dhiraj Singh/Bloomberg

IDFC said it can exit as the promoter of IDFC First Bank since the five year lock-in period has ended. This is based on the communication with the Reserve Bank of India.

“... the RBI vide its letter ...dated July 20, 2021, clarified that after the expiry of lock‐in period of five years, IDFC Limited can exit as the promoter of IDFC First Bank,” it said in a stock exchange filing on Wednesday.

Under RBI rules, the shareholding of the non-operative financial holding company, which is the promoter of the bank, will be locked in for a period of five years from the date of commencement of the business of the bank. IDFC Bank was set up in 2015. This means that the five year lock-in period is now completed.

As on June 30, 2021, IDFC Financial Holding Company held 36.56 per cent stake in IDFC First Bank.

IDFC First Bank was founded by the merger of IDFC Bank and Capital First on December 18, 2018.

Published on July 21, 2021 14:08