Bandhan bank gets nod from RBI for acquisition of Gruh Finance

Bandhan Bank

Bandhan Bank gets a no objection approval from the banking regulator-RBI for the acquisition of Gruh Finance- former affordable finance arm of HDFC bank.

The lender (Bandhan Bank) in a statement said, “The Reserve Bank has by its letter dated March 14, 2019, conveyed its no objection for the voluntary amalgamation of Gruh Finance Ltd into and with Bandhan Bank, subject to compliance with the terms and conditions therein.”

Gruh Finance which was affordable finance arm of India’s largest private lender, HDFC Bank. It was taken over by Bandhan Bank in January in a share-swap deal. As per the share swap deal kolkata based Bandhan bank has to transfer 14.9% stake to HDFC to enable the merger of Gruh Finance.

The conclusion of the deal will lead to fall in Gruh Finance holding company’s stake in Gruh from 82% to 61% while, HDFC will hold around 15% in the merged entity from about 57% in Gruh.

The swap ratio for the proposed share-swap deal will be 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.

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