NCLT Nod Boosts IDFC First Bank and IDFC

26 Sep 2024 , 12:42 PM

IDFC and IDFC Bank’s shares rose 2% and 1%, respectively, on the BSE following the NCLT’s approval of the merger of IDFC Financial Holding Company into and with IDFC and IDFC into and with IDFC FIRST Bank. IDFC First Bank and IDFC shares were trading at day highs of Rs 73.94 and Rs 112.05, respectively.

As of 12:30 p.m. shares of IDFC First Bank were flat while shares of IDFC were up 1%.

According to the announcement, the bank is in the process of seeking for a certified true copy of the NCLT Order as well as completing the necessary statutory/regulatory formalities to make the scheme effective.

The Reserve Bank of India granted IDFC Bank a licence in 2014. IDFC Bank and IDFC Capital First announced the completion of their merger in 2018 to form IDFC First Bank.

In December 2018, it acquired Capital First, a consumer and MSME-focused non-bank founded in 2012, rebranded it IDFC First Bank, and transformed it into a full-service universal bank.

IDFC was a private-sector infrastructure lender that, like its larger peers ICICI and IDBI, formed a banking subsidiary in 2015 called IDFC Bank, but it failed to make the same impact.

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