The IDFC Bank has merged completely with the non-banking financial company Capital First on 18th December 2018 into a new entity to be called as IDFC First Bank.
a. HDFC Bank
b. GDFC Bank
c. IDFC Bank
d. JDFC Bank
- The merger between IDFC Bank and Capital First was announced on 13th December 2018.
- The new bank i.e. IDFC First bank will have a loan asset book of Rs 1.03 lakh crore.
- V Vaidyanathan, who is the Founder and Chairman of Capital First Ltd, has been appointed as the Managing Director and Chief Executive Officer of the newly formed IDFC First bank.
About Non-Banking Financial Company (NBFC):
- An NBFC is a financial institution that does not have a banking license but provides banking services.
- Operations of NBFCs are regulated under the country's banking regulations but it is established under the Companies Act, 1956.
- The Reserve Bank of India regulates the NBFCs under Reserve Bank of India Act, 1934.
- NBFCs can provide loans and credit facilities, offer savings and investments products and can offer money transfer services to the customers.
- However NBFCs, unlike Banks, cannot accept demand deposits from customers.
- NBFCs also are not a part of the country's payment and settlement system.
- Therefore, they cannot offer cheque facility to their customers.
Interesting to know:
- IDFC Bank had made a deal with Shriram Group for a merger but the deal was called off as both the entities could not agree on the share swap ratio.
Question:
Q. Which bank has merged completely with the non-banking financial company Capital First on 18th December 2018 into a new entity?a. HDFC Bank
b. GDFC Bank
c. IDFC Bank
d. JDFC Bank
