IDFC receives banking licence, services to start by year-end
24 Jul 2015
IDFC Bank has been granted a banking licence by the Reserve Bank of India (RBI), making the infrastructure financing company the second lender after Bandhan Bank to get a banking licence in over a decade.
Infrastructure Development Finance Company (IDFC Ltd), which floated the bank, on Friday said the RBI has granted banking licence to IDFC Bank for undertaking banking business in the country.
"The RBI on July 23, 2015 granted Banking licence to IDFC Bank Limited for undertaking banking business in India under Section 22(1) of the Banking Regulation Act, 1949," IDFC said in a stock exchange filing.
IDFC Bank and Bandhan Financial Services Pvt Ltd emerged successful out of 25 contenders for new bank licences issued by the RBI in April last year. Bandhan Financial got RBI's approval last month.
Microfinance company Bandhan Financial Services had said in June that it would launch banking operations in August.
IDFC had proposed to start operations on 1 October, with an initial capital of Rs55,000 crore and an 20 branch offices, including 15 in Tier-VI cities and the remaining branches in New Delhi and Mumbai.
IDFC has almost completed the process of demerger of financial undertaking into IDFC Bank in accordance with RBI conditions.
All new banks are to be set up through a non-operative financial holding company, according to the guidelines.
IDFC Bank was established as a public limited company to carry out business of banking pursuant to approval granted by the Reserve Bank in April 2014.
Shares of IDFC rose as much as 6.8 per cent on Friday as compared to a flat Nifty.
