The board of IDFC Limited has granted a principal approval to inject ₹2,200 crore into IDFC First Bank, providing growth capital to the lender.
The capital injection will bring IDFC’s shareholding in the bank to 40 percent from the existing 36.38 percent, the company said in a statement.
This comes as the parent company is planning a reverse merger with IDFC First Bank. The boards of IDFC, IDFC Financial Holding Company and IDFC First Bank had granted principal approval to merge IDFC and IDFC Financial Holding with IDFC First Bank in December 2021.
The bank’s capital adequacy ratio was 16.06 percent at end-December, of which Tier I capital was 13.49 percent. The average liquidity coverage ratio (LCR) for the reporting quarter was 122 percent.
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