IDFC Bank has announced the merger with Capital First. The share swap ratio has been fixed at 139:10, which means 139 shares of IDFC Bank will be allotted for every 10 equity shares of Capital First.

V Vaidyanathan, the current Chairman and m of Capital First, will take over Rajiv Lall as the MD and CEO of the combined entity after completion of the merger and necessary regulatory approvals.

The bank in a press statement stated that, this merger is a part of IDFC’s stated strategy of retailising its business to complete their transformation into a well-diversified universal bank from the infrastructure financier.

Further, the deal is subject to regulatory approval from RBI and other authorities. Post merger, the combined entity of the iDFC Bank and Capital First will have an AUM of Rs.88,000 crore, PAT of Rs.1,268 crore (FY17).

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