The newly setup financial giant IDFC First Bank will start operations from the New Year onwards as per reports. The financial institution was set up after the merger of IDFC Bank with Capital First. As per reports, the new entity has already obtained approval from all key authorities and the National Company Law Tribunal (NCLT) approval is expected within another month. A filing will also be made with the Registrar of Companies. The transaction has already been approved by all creditors and shareholders of Capital First and IDFC Bank.
On the 25th of October, 2018, IDFC Bank officially stated that the board had issued its approval for applying to the RBI (Reserve Bank of India) for changing the name officially to IDFC First Bank Limited. The name change will necessitate approvals from regulatory and statutory authorities inclusive of shareholders, Registrar of Companies and stakeholders. Capital First and IDFC Bank are also working on the entire internal framework for operations including merger of procedures, employees and technologies along with overall restructuring.
The new banking entity will aim to leverage the market presence of Capital First for boosting the retail banking business while the IDFC Bank business model will be tapped for wholesale banking operations. IDFC First Bank is expected to majorly focus its strategy around wholesale and retail banking alike. The loan book of Capital First is already more than Rs. 3, 000 crore while the erstwhile NBFC has been offering funding for entrepreneurs in zones which are underserved. IDFC Bank also has products like working capital loans. The merger plans were declared by both entities on the 13th of January, 2018. The RBI issued its No Objection in June 2018 for merging Capital First Home Finance and Capital First Securities with IDFC Bank. Rajiv Lall, the Managing Director & CEO, IDFC Bank, will be taking over as non-executive Chairman of IDFC First Bank while the Chairman and Managing Director at Capital First, V Vaidyanthan will be taking over as Managing Director & CEO of the new entity accordingly.