IDFC Bank, Shriram Merger Deal Falls Through Over Evaluation Differences
The much-speculated merger deal of private lender IDFC Bank and Shriram Capital has finally to an end, albeit on a sour note. After either of the parties refused to accept other’s agreeable evaluation, they mutually decided to call off the merger altogether.
A person who was aware of the developments of the merger deal up close, said that “Shareholders were unhappy, regulator was unhappy…nothing was going right for it”.
Although it’s clear now that the merger won’t be materializing, both parties will certainly lose something. While the private sector bank was hoping to expand its services further with the partnership, Shriram Capital was looking at the same as an entrance into the retail banking industry.