01-August-2021
Corporate News
 
RBI clarifies IDFC can exit bank as a promoter as lock-in period ends
22-Jul-2021

IDFC Ltd said on Wednesday the Reserve Bank of India (RBI) has clarified that the company can exit IDFC First Bank as a promoter after the completion of five years. However, this is a clarification given by the central bank and not a formal nod. IDFC will have to seek formal approval from the central bank for the exit. IDFC is the owner of the holding company IDFC Financial Holding Company, which in turn holds 36.56 per cent stake in the bank. IDFC’s exit from the bank will indicate that the holding company could reverse merge with the bank, in line with what two small finance banks recently announced. If the holding company merges with the bank, then IDFC may have to sell its mutual funds business as well, analysts say. The bank management was not immediately available for comment on the development.

News Source:- https://www.business-standard.com/article/finance/rbi-gives-idfc-permission-to-exit-idfc-first-bank-as-lock-in-period-ends-121072101381_1.html