The Indian banking industry appears to be experiencing a merger season. The combined merger plan between IDFC Financial Holding Company Ltd, IDFC Ltd, and the bank was accepted by the board of directors of listed IDFC FIRST Bank Ltd. While IDFC Financial Holding is not listed on the bourses, IDFC FIRST Bank and IDFC Ltd are. The new merger occurs shortly after HDFC and HDFC Bank Ltd. amalgamated. The IDFC group restructuring plan involves two steps. In accordance with the proposed merger, IDFC Financial Holding would merge with IDFC Ltd, followed by IDFC Ltd, which will merge with IDFC FIRST Bank. The bank's decrease of its securities premium account is one aspect of the reorganization plan.

In order to combine IDFC Ltd. with IDFC FIRST Bank, 155 equity shares of IDFC FIRST Bank with a face value of Rs. 10 each will be exchanged for every 100 equity shares of IDFC Ltd. with a face value of Rs. 10 each. When explaining the rationale behind the merger, IDFC FIRST Bank stated that it will simplify the corporate structures of IDFC Financial Holding, IDFC Ltd, and IDFC FIRST Bank by combining them into a single entity and assist in streamlining the regulatory compliance of the aforementioned organizations. Similar to other sizable private sector banks, the merged company will have a diverse group of institutional and public shareholders and no promoter holding.