IDFC says can now exit as promoter of IDFC First Bank as 5-year lock-in period over

IDFC Limited on July 21 said it can now exit as the promoter of IDFC First Bank, as the five year lock-in period has ended.

"We would like to inform you that the Reserve Bank of India (“RBI”) has, vide its letter No. DOR..HOL.No.SUO‐75590/16.01.146/2021‐22 dated July 20, 2021, clarified that after the expiry of lock‐in period of 5 years, IDFC Limited can exit as the promoter of IDFC FIRST Bank Limited," said the company in a communication to stock exchanges.

IDFC holds 36.56 percent in the bank. The bank commenced operations in October 2015 which means it completed five years last year.

According to RBI rules, the shareholding of the non-operative financial holding company, which is the promoter of the bank, should be a minimum of 40 per cent of the paid up voting equity capital of the bank which will be locked in for a period of five years from the date of commencement of the business of the bank.