National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank

IDFC Ltd has received approval from the National Company Law Tribunal (NCLT), Chennai, for the merger of IDFC Financial Holding Company with IDFC, which will then merge into IDFC First Bank. This marks a significant step in consolidating IDFC’s financial structure.

In a regulatory filing on Wednesday, IDFC Ltd stated that the NCLT had sanctioned the merger scheme on September 25, 2024. The company is now in the process of obtaining a certified copy of the NCLT order and completing the necessary legal formalities to make the merger effective.

The decision follows the board’s approval in July 2023, and in May 2024, IDFC First Bank shareholders also gave their nod. The resolution was passed by more than three-fourths of the equity shareholders. Additionally, 99.99% of the Non-Convertible Debenture (NCD) holders voted in favor of the merger through e-voting.

This merger aligns with the Reserve Bank of India’s (RBI) earlier approval in December 2023 for the reverse merger of IDFC Ltd with its banking subsidiary. The move is expected to strengthen IDFC First Bank’s operations and simplify its corporate structure.

IDFC Ltd’s merger with IDFC First Bank is seen as a strategic step towards enhancing its efficiency and market position in the banking sector. The completion of the statutory formalities is now underway to finalize the process.