Santa comes in Diwali: Capital First boss gifts 10.61% of shares to former employees

Nov 5 (AZINS) The executive chairman of Capital First, a non-banking finance company has given away 10.61% of his company sahres to colleagues, former colleagues, former drivers, and house helps, The Economic Times reported on Monday.

The move comes before the NBFC merges with IDFC bank, the report added.

The company said that V Vaidyanathan, the executive chairman, would transfer 4.29 lakh shares out of the total 40.40 lakh shares as a 'token of his gratitude' and his 'love and affection for them', the report said.

In June this year, IDFC Bank said it has received RBI's approval for merger of Capital First, Capital First Home Finance and Capital First Securities with the company.

"The Reserve Bank of India (RBI) has, via its letter dated June 4, 2018, conveyed its 'No Objection' for the voluntary amalgamation of Capital First Ltd, Capital First Home Finance Ltd and Capital First Securities Ltd with IDFC Bank," IDFC Bank said in a regulatory filing.

Capital First has a customer base of 3 million and a distribution network in 228 locations across the country.

Its gross and net NPA stood at 1.63 per cent and 1 per cent, respectively as on September 2017.

Post-merger, the combined entity will have assets under management (AUM) of Rs 88,000 crore.

The new entity will have a distribution network comprising 194 branches, 353 dedicated banking correspondent outlets, over 9,100 micro ATM points, and will be serving more than 5 million customers.