The Reserve Bank of India has allowed IDFC Limited to exit as the promoter of IDFC First Bank Limited after the 5 year lock-in period, the bank said in a statement to exchanges on Wednesday. This could pave the way for a potential reverse merger between IDFC Limited and IDFC First Bank Limited. “We would like to inform you that the Reserve Bank of India (“RBI") has, vide its letter dated July 20, 2021, clarified that after the expiry of lock‐in period of 5 years, IDFC Limited can exit as the promoter of IDFC FIRST Bank Limited," IDFC First Bank said in an exchange notification. IDFC Ltd currently owns 100% in IDFC Financial Holding Company, which in turn holds 100% in IDFC Asset Management and 36.6% in IDFC FIRST Bank. The holding company discounts for Equitas Holding company stands at 28.5% and Ujjivan stands at 33.1%.

Source: Mint July 21, 2021 13:52 UTC