IDFC Bank and its hunger for growth: Story of merger with Capital First

IDFC Bank would issue 139 shares for every 10 shares of Capital First; m-cap of combined entity would be Rs 313 bn

IDFC Bank is the newest universal bank to start operations, and most certainly one that has been written about a lot in the two years of its existence. The term-lending institution that partly became the bank is much older and has its share of problems, which the lender had to bear.

Nevertheless, the standalone bank, under IDFC Financial Holding Co Ltd, has been unique for showing a voracious acquisition appetite, despite being around for such a short period. And with good reason. The share of legacy corporate loan was more than 90 per cent on the bank’s books. Gross non-performing