IDFC FIRST Bank on Thursday said its board of directors, in-principle, favours the merger with itself of IDFC Ltd and IDFC Financial Holding Company Ltd (Promoter Group).

This merger is subject to the approval of the board of directors, shareholders, creditors, of the respective entities as also statutory and regulatory nod, IDFC First Bank said in a regulatory filing.

The bank’s board has constituted and authorised a ‘Capital Raise and Corporate Restructuring Committee’ to work on the terms of the proposed merger including finalising the scheme, valuation, and hiring advisors. The boards of IDFC and IDFC FHCL, at their respective meetings on Thursday, considered and noted the letter received from IDFC FIRST Bank regarding the merger and decided to give “in principle” approval for the proposed merger.