The Chennai-based Shriram Capital and IDFC Bank are set to begin 90 days of exclusive negotiations next week for an all-stock merger that could create a Rs 60,000-crore financial powerhouse, with both groups filling gaps in each other’s businesses.  According to an investment banking source, the lending business of the Shriram group, which includes listed companies such as Shriram Transport Finance and Shriram City Union Finance, could be merged with IDFC Bank, while the unlisted life and general insurance companies could be merged with IDFC.

The Chennai-based Shriram Capital and IDFC Bank are set to begin 90 days of exclusive negotiations next week for an all-stock merger that could create a Rs 60,000-crore financial powerhouse, with both groups filling gaps in each other’s businesses.  According to an investment banking source, the lending business of the Shriram group, which includes listed companies such as Shriram Transport Finance and Shriram City Union Finance, could be merged with IDFC Bank, while the unlisted life and general insurance companies could be merged with IDFC.