Employees sit at the reception desk at Capital First Office in Mumbai, India. (Pgotographer: Anirudh Saligrama/BloombergQuint)

Capital First Expects IDFC Bank Merger To Be Finalised In Next Few Months

Capital First Ltd. expects its merger with IDFC Bank Ltd. to be finalised over the next few months, said V Vaidyanathan, chairman and managing director of the debt financing company.

IDFC Bank's application to the Reserve Bank of India is under process and the merger has already received clearance from the Competition Commission of India, he told BloombergQuint in a post-earnings interaction.

The retail segment will contribute a significant portion of the revenue for the merged entity, Vaidyanathan said. He expects a compounded annual growth rate of 25 percent in retail and stable asset quality. “We expect improvement but the gross non-performing assets are expects to be stable at 1.6 percent levels.”

While project financing remains a matter of concern, Vaidynathan sees ‘streams of income in the wholesale banking segment as well.

Also read: It’s ‘Retail First’ For The IDFC Bank-Capital First Combine

Watch the full conversation here: