IDFC Bank rose 8.5% to Rs.41.50 and Capital First was up almost 7% at Rs.569 and the mood on both the counters remains upbeat.
The RBI today approved Capital First’s merger with IDFC Bank, giving it a ‘no objection’ certificate.
IDFC will have a 38% stake in the merged entity, which is under the RBI mandated 40% level. IDFC does not plan to issue any fresh equity and it will most likely be buying close to 2% either through market operations or any other route.
Post-merger, the combined entity will have an asset under management of Rs.88,000 crore, with a distribution network comprising 194 branches, 353 dedicated banking correspondent outlets and over 9,100 micro ATM points.