PM formally launches new commercial bank IDFC

Date: October 19, 2015

Bandhan RBI Delhi

IDFC Bank to start operations from Oct 1

Infrastructure financier IDFC, which received a universal banking licence from the Reserve Bank of India (RBI) last year, will start banking operations from October 1. It received in-principle approval for operation in April 2014 and obtained the final approval on Friday.

Bandhan, which also received a banking licence, is started operations from August 23.

IDFC has three finance subsidiaries — IDFC AMC, IDFC Alternatives, and IDFC Securities. To conform to RBI guidelines, it has to create a non-operative financial holding company (NOFHC) under IDFC and the three finance subsidiaries will have to be under the NOFHC, a 100 per cent subsidiary of IDFC. IDFC will be the holding company, which will have two subsidiaries — NOFHC and IDFC Foundation.

BS

IDFC intend to start with 20 branches of which 15 branches will be in tier-IV centres (population of less than 10,000). All these branches will be located in three districts of Madhya Pradesh — Khandwa, Harda and Hosangabad. The remaining five branches will be in metropolitan cities such as Delhi and Mumbai.

This will be India's 91st scheduled commercial bank.