IDFC, IDFC FHCL and IDFC First Bank receive no objection for amalgamation from RBI

In July 2023 IDFC board of directors of IDFC FHCL, IDFC and IDFC FIRST Bank approved the proposed for amalgamations.

IDFC Ltd on December 27 said the Reserve Bank of India (RBI) has given its no objection certificate (NOC) for the amalgamation of IDFC Limited, IDFC FHCL, and IDFC First Bank.

In July 2023 IDFC board of directors of IDFC FHCL, IDFC and IDFC FIRST Bank approved the proposed for amalgamations.

"We would like to inform you that IDFC Limited and IDFC FHCL have received letters dated December 26, 2023, from RBI whereby RBI has conveyed its 'No Objection' to the composite scheme of amalgamation," said IDFC in its regulatory filing.

IDFC Bank was given a licence by the RBI along with Bandhan Bank in 2014. In 2018, IDFC Bank Ltd and Capital First Ltd announced the completion of the merger to become IDFC First Bank.

IDFC, through its non-financial holding company, holds a 39.93 percent stake in IDFC First Bank. After the merger, the book value per share of the bank will increase by 4.9 percent, as calculated on audited financials as of March 31, 2023.

Earlier bank, in a filing to the stock exchanges, said the merger will lead to the simplification of the corporate structure of IDFC Financial Holding Company, IDFC Ltd and IDFC First Bank by consolidating them into a single entity and will help streamline the regulatory compliances of these entities.

"The merger will help create an institution with diversified public and institutional shareholders, like other large private sector banks, with no promoter holding," the bank said.