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RBI allows IDFC to exit as promoter of IDFC First Bank

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MUMBAI: The Reserve Bank of India (RBI) allowed IDFC to leave as a promoter of IDFC First Bank.
In a regulatory filing made to the BSE, IDFC said the RBI on July 20 clarified that “after the expiration of the 5-year lockdown period, IDFC Limited can go out as a promoter of IDFC First Bank Limited. ”
Consequently, the company can now exit as a promoter for IDFC First Bank, as the five-year lockdown period has ended.
IDFC Bank was created by spinning off IDFC’s infrastructure lending business to IDFC Bank in 2015.
“After the lockdown period, the RBI has allowed IDFC to withdraw as 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. “Sonam said. Chandwani, Managing Partner of KS Legal Associates.
Furthermore, while the suggestions from the internal working group have yet to be implemented, the regulations are clear in terms of the holding company withdrawing only if it has no other organizations in its fold, paving an alternative path for the exit of corporations such as IDFC. . ”





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