Indian private sector lender IDFC Bank has completed its merger process with Warburg Pincus-backed Capital First.
The company has secured all necessary shareholder and regulatory approvals for the merger.
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The merged entity will operate as IDFC First Bank with V Vaidyanathan serving as the managing director and CEO of the company.
However, the new name and the appointment are subject to shareholders’ approval.
IDFC Bank-Capital First merger: Background
In January, both the entities entered into agreement to merge their operations through an all-share deal.
Under the terms of the agreement, IDFC Bank issued 139 shares for every ten shares of Capital First.
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By GlobalDataThe combined unit will offer retail and wholesale banking products and services to the customers through 203 bank branches, 129 ATMs, 454 rural business correspondent centres.
The bank is estimated to serve 7.2 million customers across India.
Vaidyanathan said: “The merger presents an incredible opportunity to strengthen our banking capabilities, operate as a larger universal bank and bring immense benefits to our customers.”
“We believe our complementary portfolio gives the combined entity access to high-growth customer segments.
“It enables us to enhance the lending platform and fast-track the building of the liability franchise, by offering customers a broader set of solutions.”
The IDFC Bank-Capital First merger received Competition Commission of India approval in March this year.
As of 30 September 2018, the combined IDFC First Bank has on-book loan assets of INR1026.83bn ($14.59bn).
