MUMBAI: The Competition Commission of India (CCI) has approved the proposal of Infrastructure Development Finance Company (IDFC) to merge with its banking arm IDFC First Bank.
“The CCI vide its letter dated October 17, 2023, has said that it has considered and approved the combination under Green Channel Route,” IDFC said in a regulatory filing with the stock exchange.
The proposal for the merger was approved by the board of directors of IDFC and IDFC First Bank on July 3.
The proposed amalgamation would come into effect after it receives clearance from statutory and regulatory bodies such as the Securities and Exchange Board of India, the Reserve Bank of India, and the National Company Law Tribunal (NCLT). IDFC holds a stake of around 30.93 per cent in IDFC First Bank through its non-financial holding company.
The two entities have set a target to complete the merger during the current financial year.
Under the terms of the proposed merger, shareholders of IDFC will get 155 shares of IDFC First Bank for every 100 shares held in the former.
The decision came in the backdrop of a similar merger of Housing Development Finance Corporation (HDFC) with HDFC Bank on July 1.