IDFC Bank announces merger with Capital First

TIL Desk/Business/Mumbai/ IDFC Bank will merge with Warburg Pincus-backed Capital First in an all-share deal, and V Vaidyanathan, the current chairman of Capital First, will become the MD and CEO of the merged entity, succeeding Rajiv Lall.’ IDFC Bank will be issuing 139 shares for every 10 shares of Capital First, the bank said in a statement.

The merger is subject to regulatory and shareholder approvals. Post-merger, the combined entity of IDFC Bank and Capital First will have assets under management of Rs 880 billion and will serve more than five million customers across the country, the bank said in a statement.

The profit after tax of the merged entity would have been Rs 12.7 billion, as on the end of fiscal 2017, and a distribution network of 194 branches (as per branch count of December 2017 of both entities), 353 dedicated business correspondent outlets and over 9,100 micro ATM points, serving more than five million customers across the country.

“This announcement is pursuant to IDFC Bank’s stated strategy of ‘retailising’ its business to complete its transition from a dedicated infrastructure financier to a well-diversified universal bank, and in line with Capital First’s stated intention and strategy to convert to a universal bank,” the statement said.