Warburg Pincus-backed Capital First has secured approval from the National Housing Bank (NHB) for its planned merger with IDFC Bank, a private-sector lender in India.
With approval in place, Capital First along with Capital Home Finance and Capital First Securities will merge with IDFC Bank.
In a regulatory filing, Capital First said: “We would like to inform you that the National Housing Bank (NHB) has vide its letter dated February 19, 2018 intimated that NHB has no objection to the aforesaid amalgamation subject to its compliance with the applicable provisions of relevant acts, rules, regulations, etc in the matter.”
The merger, first announced in January this year, is still pending receipt of approval from the Reserve Bank of India (RBI) and other statutory approvals.
The successful completion of the merger will create an INR880bn ($13.7bn) entity with a support base of more than five million customers.
The new entity will have 194 branches, 353 dedicated banking correspondent outlets and over 9,100 micro ATM points across India.
The merger is slated to close in the next two- three quarters.