Warburg Pincus-backed Capital First has obtained approval from the anti-monopoly watchdog Competition Commission of India (CCI) for its planned merger with IDFC Bank, a private-sector lender in India.
Earlier in the third week of February, the National Housing Bank (NHB) gave its green signal for the proposed merger.
The merger, first announced in January this year, is still subject of approval from the Reserve Bank of India (RBI) and Stock Exchanges, Securities & Exchange Board of India, the National Company Law Tribunal, and the respective shareholders and creditors.
The merger of IDFC Bank and Capital First will create an INR880bn ($13.7bn) entity with a support base of more than five million customers. The merger is part of IDFC Bank’s strategy of “retailising” its business and transforming it into a well-diversified universal bank.
IDFC chairman Rajiv Lall said that the merger can take up to 6-9 months time to start operations.
Upon completion of the merger, the united entity will manage 194 branch offices, 353 dedicated banking correspondent outlets and over 9,100 micro ATM points across India.