Mumbai: Capital First Ltd on Friday said that it has received approval from the Competition Commission of India (CCI) for its merger with IDFC Bank Ltd.

The merger is still subject to approval from the Reserve Bank of India, the non-banking finance company stated in a stock exchange notification.

The deal announced on 13 January will allow IDFC Bank to grow its retail book, which it has been unable to do in the last two-and-a-half years. As on 31 December, 2017, IDFC Bank’s current and savings account stood at 10.1% while for most established banks the number is over 30%.

As on 30 September, 2017, the bank’s retail book comprised 26% of the total loan book whereas Capital First’s retail book accounted for 93% of its assets. It is, however, not clear how the bank will shore up its CASA after the merger as Capital First is a non-deposit-taking NBFC.

Post the merger, V. Vaidyanathan, chairman and managing director of Capital First, will succeed Rajiv Lal as the MD and chief executive officer of the combined entity. Lal will take on the role of the non-executive chairman of IDFC Bank, subject to regulatory approvals.

As per the agreement, IDFC Bank will issue 139 shares for every 10 shares of Capital First. The assets under management of the combined entity are pegged at Rs88,000 crore.