IDFC Bank Limited has officially proposed a change in its name. The new name of the bank will be IDFC First Bank Limited. This comes after the bank started absorbing the NBFC Capital First Limited within itself. The bank’s board of directors have already held an official meeting and approval will be sought from the RBI (Reserve Bank of India) for officially renaming the financial institution.
The name change will also necessitate statutory/regulatory approval from various entities including shareholders, registrar of companies and other stakeholders as per reports. The amalgamation of the NBFC Capital First into IDFC Bank is currently at an advanced stage as per reports and all required approvals have been obtained from the stock exchanges, Competition Commission of India, creditors and shareholders along with the RBI. Only the approval from the National Company Law Tribunal is being awaited by IDFC Bank.
Capital First is a fast-growing NBFC backed by Warburg Pincus and the merger of the entity with IDFC Bank will enable the creation of a financial giant worth around Rs. 88, 000 crore cumulatively. 139:10 is the fixed share swap ratio in case of this merger as per reports. This indicates that 139 shares will be issued by IDFC Bank for every 10 Capital First shares. IDFC had applied for its banking license back in the year 2013. In-principle approval for the same was obtained by the bank from the Reserve Bank of India in 2014.