IDFC Current Affairs - 2019
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The IDFC Bank has merged completely with the non-banking financial company Capital First on 18th December 2018 into a new entity to be called as IDFC First Bank. The merger between IDFC Bank and Capital First was announced on 13th January 2018. The new bank i.e. IDFC First bank will have a loan asset book of Rs 1.03 lakh crore.
V Vaidyanathan, who is the founder and chairman of Capital First Ltd, has been appointed as the Managing Director and Chief Executive Officer of the newly formed IDFC First bank.
About Non-Banking Financial Company(NBFC):
- An NBFC is a financial institution that does not have a banking license but provides banking services.
- Operations of NBFCs are regulated under a country’s banking regulations but it is established under the Companies Act, 1956.
- The Reserve Bank of India regulates the NBFCs under Reserve Bank of India Act, 1934.
- NBFCs can provide loans and credit facilities, offer savings and investments products and can offer money transfer services to the customers.
- However NBFCs, unlike Banks, cannot accept demand deposits from customers.
- NBFCs also are not a part of the country’s payment and settlement system. Therefore, they cannot offer cheque facility to their customers.
IDFC Bank had made a deal with Shriram Group for a merger but the deal was called off as both the entities could not agree on the share swap ratio.
Infrastructure Development Financing Company (IDFC). Ltd became second lender to enter the banking sector since 2004, as the Reserve Bank of India granted Banking licence on 24 July 2015.
It was Yes Bank that got banking licence in 2004. However, IDFC and Microfinance Company Bandhan Financial Services Pvt Ltd were granted preliminary bank permits by RBI in April 2014 and Bandhan got Banking licence from RBI in June 2015 and plans to start its operations from August 2015, whereas IDFC plans to start operations from 1 October 2015.
IDFC will start its operations with 20 branches and with initial loan book of 55,000 crore rupees.
IDFC is a leading public limited infrastructure finance company that provides end to end infrastructure financing and project implementation services. It was incorporated in 1997 with main motive to provide finance for infrastructure projects and advisory services for asset management and investment banking. Its independent director is ex- Comptroller and Auditor General (CAG) of India Mr. Vinod Rai.