IDFC, Shriram call off merger talks


IDFC limited and IDFC Bank finally called off deal with with the Shriram Group with regards to a potential merger.

The two groups had signed an exclusivity agreement on July 8
to allow for due diligence and discussions to arrive at an agreement on a transaction structure and swap ratio for a strategic combination between certain businesses of the Shriram Group with IDFC Bank and IDFC Limited.

Despite best efforts, the two groups have not been able to reach an agreement on a mutually acceptable swap ratio. Accordingly, the exclusivity period stands terminated with immediate effect.

IDFC Bank’s strategy to expand its retail business at an accelerated pace and diversify its corporate business outside of its traditional infrastructure focus remain on track.

Over the past 24 months, the Bank has very rapidly developed a diversified retail asset portfolio of Rs 18,000 crores representing a
retailisation of over 25%. The Bank’s CASA and retail deposit base now stands at over Rs 7000 crores, growing at an annualized rate of 140%.

IDFC Bank has built a base of 2 million active customers, growing at the rate of 125,000 customers a month and serviced through our 100 regular bank branches, 383 business correspondent branches, and 10,258 Micro ATMs. By the end of this FY, the Bank will have a presence in 35 metros and Tier I cities, 330 districts, 50,000 villages across 25 states. On the corporate side, by the end of this FY, excluding Infra, the Bank will have a book of over Rs 20,000 crores.

IDFC Bank, while focusing on enhancing its strategic momentum, will continue to explore opportunities for inorganic growth as well.