IDFC Bank to be renamed as IDFC First Bank

IDFC Bank proposed to change its name to ‘IDFC First Bank Ltd’ in the wake of its amalgamation with the non-banking financial company Capital First. The decision was taken during the meeting of the Board of Directors of IDFC Bank. The proposal now needs the approval of the Reserve Bank of India (RBI). It would further require the approvals of statutory or regulatory authorities including the Registrar of Companies, Shareholders and other Stakeholders.

Warburg Pincus-backed Capital First and IDFC Bank, with this merger in an all-stock deal, would create an Rs 88,000-crore combined entity. The share swap ratio for the merger is fixed at 139:10, meaning IDFC Bank will issue 139 shares for every 10 shares of Capital First. IDFC had applied for a banking license in 2013 and got in-principle approval for the same from the RBI. IDFC Bank was inaugurated by Prime Minister Narendra Modi in 2015.

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  • IDFC Bank proposed to change its name to IDFC First Bank Ltd.
  • IDFC Bank was inaugurated by Prime Minister Narendra Modi in 2015.
  • The decision was taken during the meeting of the Board of Directors of IDFC Bank.
  • The proposal now needs the approval of the Reserve Bank of India (RBI).
  • It would further require the approvals of statutory or regulatory authorities including the Registrar of Companies and shareholders.
  • The share swap ratio for the merger is fixed at 139:10
  • IDFC Bank will issue 139 shares for every 10 shares of Capital First.

IDFC Bank

The IDFC is an Indian banking company with headquarters in Mumbai that forms part of IDFC, an integrated infrastructure finance company. The bank started operations on 1 October 2015. IDFC received a universal banking license from the Reserve Bank of India in July 2015. IDFC was incorporated on 30 January 1997 with its registered office in Chennai and started operations on 9 June 1997. In 1998 the company registered with the Reserve Bank of India (RBI) as a non-banking financial company and in 1999 it formally became a Public Financial Institution. IDFC Bank started operations with 23 branches in Madhya Pradesh, Delhi, Mumbai, Hyderabad, Bengaluru, Pune, Chennai, Ahmedabad, and Kolkata. 15 branches are in settlements with a population of less than 10,000. IDFC bank has launched its 100th branch in Honnali, Karnataka in October 2017.

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Focus

The bank serves corporate and private customers in India including the infrastructure sector that IDFC specialized in from its founding in 1997. The bank also aims to provide services to people in rural areas and to the self-employed. The bank IDFC Bank is the first in India to launch aadhaar-linked cashless merchant solution. One of its largest loans into e-commerce includes a 300 crore rupees one to Flipkart. On 8 November 2017, IDFC Bank entered into a strategic partnership with digital payments solution company MobiKwik to launch a co-branded virtual Visa prepaid card for customers of MobiKwik.

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