IDFC Bank has recently proposed to rename itself as ‘IDFC First Bank Ltd.’, given that the lender is in the process of merging with Capital First. In a regulatory filing, the lender said that its Board of Directors have decided to obtain approval from the Reserve Bank of India (RBI) to change its name to IDFC First Bank Limited.
In order to rename itself, IDFC Bank will also require further approvals from regulatory/statutory authorities such as the shareholders, the Registrar of Companies, and other stakeholders.
The private-sector lender added that its merger with Capital First is at an advanced stage and that it has already received approvals from the stock exchanges, Competition Commission of India, the Reserve Bank of India (RBI), and the creditors and shareholders. The bank added that it is awaiting approval from the National Company Law Tribunals.
The merger of IDFC Bank and Capital First will create a combined entity worth Rs.88,000 crore. For this amalgamation, the share swap has been fixed at 139:10, which means that IDFC Bank will be issuing a total of 139 shares for 10 shares of Capital First.
IDFC Bank applied for a banking licence in the year 2013 and received an in-principle approval from the Reserve Bank of India the following year. Mr. Narendra Modi, the Prime Minister of India, inaugurated the private-sector bank in 2015.
Sources: The Times of India, The Economic Times