RBI allows IDFC to exit IDFC First Bank

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 "after 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.

"After 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. (IANS)

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