1. Infrastructure Development Finance Company (IDFC):
• IDFC was established in 1997 by the Government of India as a specialized financial institution to provide long-term finance to infrastructure projects. It played a crucial role in funding various infrastructure projects across the country, including roads, power, telecommunications, and more.
2. FIRST Bank:
• FIRST Bank was initially known as The Bank of Rajasthan Ltd., a private sector bank in India. It was established in 1943 and had a long history of banking operations in the country.
The merger of IDFC and FIRST Bank led to the formation of IDFC FIRST Bank. Here's a brief overview of the merger timeline:
• 2015-2018: Talks and negotiations began for the merger of IDFC Bank (which was a separate entity from IDFC) and FIRST Bank. However, these discussions didn't materialize into a merger.
• 2018: IDFC Bank and Capital First (a non-banking financial company) merged, forming IDFC FIRST Bank. Capital First brought its expertise in retail lending to the table, complementing IDFC Bank's strengths in wholesale banking and infrastructure financing.
• 2019: The merger received regulatory approval, and IDFC FIRST Bank commenced operations. The bank aimed to provide a wide range of banking and financial services, catering to both retail and corporate customers.
IDFC FIRST Bank operates as a full-service universal bank, offering services such as savings and current accounts, loans, credit cards, insurance, wealth management, and more. The merger allowed the combined entity to leverage its strengths in both retail and wholesale banking, aiming to emerge as a significant player in the Indian banking sector.