The apex bank on Wednesday has given a go-ahead to merge Capital First and IDFC Bank. In a filing to the exchanges, the Mumbai-headquartered NBFC, Capital First said that the RBI has given its 'no objection' to the strategic deal via a letter dated June 4.
The merger of these two financial institutions was first announced in January this year. The merged entity will offer diversified lending products across retail credit, small and medium enterprise loans and large corporate lending.
In a statement the bank after the announcement of the merger said, that the merged institution will have combined assets under management to the tune of Rs. 88,000 crore. At the same time, the distribution channel of the company will be enhanced to include 194 branches, 9,100 micro ATM points and 353 banking correspondent outlets.
The merger is yet to receive approval from the shareholders, National Company Law Tribunal and creditors of the two entities.