IDFC FIRST Bank Completes Landmark Merger with IDFC Limited

IDFC FIRST Bank announced the completion of its merger with IDFC Limited, effective October 1, 2024. The simplified corporate structure will enable improved financial stability and growth opportunities. Key benefits include enhanced shareholding structure and capital influx. The merger allows the bank to consider future dividend payouts and aligns it with leading global banks.

IDFC FIRST Bank has successfully completed its merger with IDFC Limited, effective from October 1, 2024, following the necessary shareholder and regulatory approvals. The merger will see the allocation of 155 equity shares of the Bank for every 100 equity shares of IDFC Limited held by shareholders as of the record date, October 10, 2024.

The merger brings several advantages to IDFC FIRST Bank, including a simplified corporate structure, similar to leading institutional Indian private sector banks with no promoter holding. Approximately ₹600 crores of cash and equivalents will flow into the Bank, improving its capital base.

This strategic move is expected to facilitate the Bank's ability to pay dividends, previously restricted due to accumulated losses. Furthermore, it will streamline regulatory compliances and place IDFC FIRST Bank in a strong position to leverage the growing opportunities in the fast-expanding Indian economy.

(With inputs from agencies.)