Chennai, Apr 10 (PTI) With IDFC getting shareholders approval for its demerger scheme to set up a wholly-owned subsidiary IDFC Bank, the stage is set for the new bank to be operational from October this year.
The demerger scheme was earlier approved by the Reserve Bank and board of directors of IDFC.
"The...Shareholders have unanimously approved the scheme of arrangement among IDFC and IDFC Bank and their respective shareholders and creditors under Section 391 to 394 of the Companies Act, 1956", IDFC said in a BSE filing.
Last month, the Chennai-based company, as part of taking forward its plan to set up bank, sought shareholders' approval for demerging its financial undertaking into a new entity to be named IDFC Bank.
"It (IDFC Bank) should be operational by October 2015," IDFC Chairman Rajiv Lall had said.
RBI approved a scheme of arrangement between IDFC and IDFC Bank in January.
In April last year, IDFC bagged a licence from the RBI to set up a bank. IDFC and Bandhan emerged successful out of about 25 contenders for new bank licences issued by the RBI in April.
Shares of IDFC closed at Rs 176.20, up 2.26 percent on the BSE.
IDFC proposes to realign its businesses to comply with the corporate structure requirements of the RBI guidelines to set up new banks and demerge its financing undertaking to IDFC Bank.
The guidelines specifically mandates that all new banks are to be set up through a non-operative financial holding company.
The demerger was in accordance with RBI conditions which requires IDFC to transfer the relevant business activities to the proposed IDFC Bank.
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.
