IDFC First Bank shareholders have approved the merger of IDFC Ltd with the bank. The merger was proposed in December 2023 and received approval from the Reserve Bank of India (RBI) in the same month.
Under the terms of the merger, IDFC Ltd shareholders will receive 155 shares of IDFC First Bank for every 100 shares of IDFC Ltd they hold. The merger is expected to be completed in the coming weeks.
The merger is expected to create a stronger and more competitive bank. IDFC First Bank is a full-service bank with a strong presence in retail banking, while IDFC Ltd is a leading infrastructure finance company. The merger will combine the strengths of both banks and create a more diversified and resilient institution.
The merger is also expected to create synergies that will benefit both banks. For example, IDFC First Bank will be able to tap into IDFC Ltd’s expertise in infrastructure finance, while IDFC Ltd will be able to benefit from IDFC First Bank’s strong retail banking presence.
The merger is a positive development for both IDFC First Bank and IDFC Ltd. It is expected to create a stronger and more competitive bank that will be well-positioned for future growth.
Key Highlights of the Merger
- IDFC Ltd shareholders will receive 155 shares of IDFC First Bank for every 100 shares of IDFC Ltd they hold.
- The merger is expected to be completed in the coming weeks.
- The merger is expected to create a stronger and more competitive bank.
- The merger is expected to create synergies that will benefit both banks.
Impact of the Merger on Shareholders
The merger is expected to be accretive to earnings for IDFC First Bank shareholders. The bank expects to achieve cost savings of ₹1,500 crore per year as a result of the merger. The merger is also expected to boost the bank’s net worth by ₹4,500 crore.
IDFC Ltd shareholders are also expected to benefit from the merger. They will receive shares of a larger and more diversified bank with a stronger track record of profitability.
Overall, the merger is a positive development for both IDFC First Bank and IDFC Ltd. It is expected to create a stronger and more competitive bank that will be well-positioned for future growth.
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