IDFC Ltd. and Capital First Ltd. have announced their merger today. The boards of the two financial companies have approved the merger that will open doors to large corporate lending, small and medium enterprise loans and retail credit.

Capital First shareholders will get 139 shares of IDFC Bank for every 10 held as per their agreement. V Vaidyanathan, the founder and executive chairman of Capital First will take over as the CEO of the bank post the merger. Rajiv Lall, the current CEO of IDFC Bank, will move into the role of executive chairman.

Bipin Gemani is appointed as the interim chief financial officer of IDFC Bank, who was previously serving as IDFC's Ltd's CFO.

IDFC Bank established itself in October 2015 and was ever since looking to expand itself in the retail business but failed in its merger attempt with Shriram Group. IDFC Bank's major break-up till now in its loan books has been infrastructure financing inheriting it from its parent company IDFC Ltd.

Capital First will bring with it its customer base of three million and a 228 branches distribution network across the country.