The merged entity will serve 7.2 million customers through its 203 bank branches, 129 ATMs, 454 rural business correspondent centres across the country’s urban and rural geographies. IDFC First Bank will now offer retail and wholesale banking products to a greater number of customer segments. V. Vaidyanathan, Founder and Chairman of Capital First will head the bank as managing director and chief executive officer. Rajiv Lall, Founder MD & CEO of IDFC Bank has been appointed as part-time non-executive chairman of IDFC First Bank.
The merger was announced on January 13, 2018, and as per the terms of the merger agreement shareholders will receive 139 shares of IDFC Bank for each 10 shares held of Capital First. IDFC, which started banking operation on October 1, 2015, had been focussing on increasing the retail portfolio.
Shares of IDFC Bank rose 4.71% to Rs 41 while Capital First rose 5.13% on the Bombay Stock Exchange.
On a combined basis, IDFC First Bank has on-book loan assets of Rs. 1,02,683 crore, as per the last reported financial results for the quarter ended September 30, 2018. The retail loan book will now contribute 32.46% to the overall loan book.
“The merger presents an incredible opportunity to strengthen our banking capabilities, operate as a larger universal bank and bring immense benefits to our customers,” said V. Vaidyanathan, MD & CEO of IDFC First Bank. ”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. We look forward to enriching banking experience for the masses, by delivering technology-led quality banking services.”