Gulf Today

RBI allows IDFC to exit IDFC First Bank

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MUMBAI: The Reserve Bank of India had allowed IDFC to exit the IDFC First Bank.

In a regulatory filing made to the BSE, IDFC said that the RBI on July 20 clarified that “ater the expiry of lock-in period of 5 years, IDFC Limited can exit as the promoter of ‘IDFC FIRST Bank Limited’”.

Accordingl­y, the company can now exit as promoter of IDFC First Bank, as the five year lock-in period has ended.

The IDFC Bank was created by demerger of the infrastruc­ture lending business of IDFC to IDFC Bank in 2015.

“Ater the lock-in period, the RBI has allowed IDFC to withdraw as a promoter of IDFC First Bank. The above clarificat­ion could potentiall­y lead to a reverse merger, which would be beneficial to IDFC Limited shareholde­rs by increasing shareholde­r value,” said Sonam Chandwani, Managing Partner at KS Legal & Associates.

“Also, while the suggestion­s of the internal working group have not yet been implemente­d, the regulation­s are clear in terms of the holding company quiting only if it has no other organisati­ons in its fold, paving an alternativ­e road to departure for corporatio­ns like IDFC.”

Separately, ICICI Group’s subsidiary ICICI Securities on Wednesday reported a year-onyear rise of 61 per cent in its consolidat­ed net profit for Q1FY22.

The consolidat­ed net profit for Q1FY22 rose to Rs 311 crore from Rs 193 crore in Q1FY21, on account of growth in revenue and improvemen­t in margins.

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