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Informist, Wednesday, Sep 25, 2024

 

--IDFC: Got NCLT nod for merger of co, IDFC Fincl with IDFC FIRST Bk 
--IDFC: Got NCLT nod for merger with IDFC Financial Holding 

 

MUMBAI – The National Company Law Tribunal has approved the merger of IDFC Financial Holding Co Ltd into IDFC Ltd and the merger of the combined entity into IDFC FIRST Bank, IDFC Ltd informed the exchanges today. 

 

"The company is in the process of applying for availing certified true copy of the NCLT Order and completion of requisite statutory/regulatory formalities, in order to make the Scheme effective," the company said in the filing.

 

In July, IDFC Ltd and its group companies filed a joint petition for approval of the merger. After an initial hearing, the matter was pushed to Sep 4.

 

Under the proposed scheme of merger, IDFC shareholders will get 155 shares for every 100 shares held in the bank. IDFC Ltd and IDFC FIRST Bank shares have a face value of 10 rupees each, as per the bank's annual report for 2023-24 (Apr-Mar).

 

"The proposed Amalgamation will result in simplification of the Corporate Structure and the Equity Shareholders of IDFC Limited will directly hold Equity Shares in the Bank, thereby offering them larger free public float of the combined listed company," the annual report said.

 

In July, the bank's Managing Director V. Vaidyanathan said he expected the merger to be completed in 9-12 months. The Reserve Bank of India approved the merger on Dec 18.

 

For the June quarter, IDFC FIRST Bank reported an 11% on-year decline in net profit to 6.81 bln rupees. Its net interest income rose 25% on year to 46.95 bln rupees. In the reporting quarter, the net interest margin moderated to 6.22% from 6.35% a quarter ago. In terms of asset quality, the gross non-performing asset ratio of the bank was at 1.90% as of Jun 30 and the net non-performing asset ratio was at 0.59%.

 

On the National Stock Exchange today, shares of IDFC FIRST Bank closed 0.9% lower at 73.02 rupees. Shares of IDFC Ltd also closed 0.9% lower at 109.87 rupees.  End

 

Reported by Kshipra Petkar

Edited by Rajeev Pai

 

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