IDFC formed a wholly-owned subsidiary IDFC Financial Holding Company , which owns 52% of IDFC Bank. "It may not exactly be a reverse merger there are variants to that ... the details of which I cannot really discuss," Rajiv Lall , chief executive, IDFC Bank, told ET. "IDFC Bank is among the worst performing to notch private lenders with its stock falling 29% in the past year. This time around it may well be IDFC and IDFC Bank merging after the Reserve Bank of India's 'on-tap' licensing rules pave the way for dumping the holding company structure.The plans are sketchy at this point with less than 24 hours after RBI said that entities like IDFC if in future wanted to be a bank need not follow the complex holding company structure. MUMBAI: A story similar to that of ICICI merging with ICICI Bank to create a behemoth may play out again after a gap of 15 years.

Source: Economic Times August 02, 2016 19:52 UTC