IDFC, IDFC First Bank shares jump up to 2% on NCLT nod for merger

The majority shareholders of IDFC First Bank approved the amalgamation of IDFC with the bank at a meeting convened by the Chennai bench of the National Company Law Tribunal on May 17, 2024.

On December 27, 2023, IDFC said the Reserve Bank of India has given its no objection certificate (NOC) for the amalgamation of IDFC, IDFC FHCL, and IDFC First Bank. In July 2023, the IDFC board of directors approved the proposed for amalgamations.

IDFC Bank was given a licence by the RBI along with Bandhan Bank in 2014. In 2018, IDFC Bank and Capital First 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.

Over the past year, shares of IDFC have fallen 13 percent in trade, while IDFC First Bank's stock has tumbled 23 percent during the same time period.

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