IDFC Bank, a subsidiary of diversified financial services firm IDFC, has received approval from Reserve Bank of India (RBI) to start retail banking operations in India.
IDFC as well as Bandhan Financial Services were the only two companies to receive preliminary bank permits in April 2014 from RBI.
IDFC Bank was set up as a public limited company to conduct banking business pursuant to approval from the RBI.
It has currently almost completed the process of demerger of financial undertaking into IDFC Bank, under which IDFC will transfer the relevant business activities to the proposed IDFC Bank.
The bank intends to start operation with 20 branches from 1 October, with an initial loan book worth nearly INR550bn.