Bandhan Bank Receives RBI's Nod To Acquire Gruh Finance

In a regulatory filing, the new-age Bandhan Bank 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". The bank has been a go-ahead by the Reserve Bank of India for the proposed acquisition of Gruh Finance.

In January, the housing finance company of HDFC Ltd;. Gruh Finance has been taken over by Bandhan Bank in a share swap agreement. In accordance with the terms of the deal, Kolkata-based Bandhan Bank has to transfer 14.9% stake to HDFC for the proposed merger of Bandhan with Gruh Finance.

The swap ratio for the amalgamation will be 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.

After the deal, promoter holding i.e. Bandhan Financial Holdings in Bandhan Bank will come down to 61% from appx. 82%, while stake of HDFC in Gruh Finance will also be reduced from 57% and it will now hold 15% in the merged company.

Bandhan Bank stock closed 0.45% down at Rs 511.05 on the BSE.

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