Clearing the decks for the merger of IDFC Bank and Capital First, the Reserve Bank of India has issued a no objection certificate to the deal.
Capital First, provider of loans to small businesses, is backed by buyout firm Warburg Pincus. Capital First is being acquired by IDFC Bank for around $1.5 billion.
After getting the RBI’s nod, IDFC Bank will now have to approach the shareholders and creditors of the merged companies. A nod from the NCLT is also required to clear the way for both the entities to merge.
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Capital First Home Finance and Capital First Securities will also merge with the IDFC Bank.
The proposed deal had received the approval from competition watchdog CCINSE 0.00 % in March.
