Bandhan Bank gets shareholders' nod to merge Gruh Finance

Bandhan Bank on Tuesday said it has received approval of its shareholders for the proposed acquisition of Gruh Finance.

Bandhan Bank had agreed to takeover Gruh Finance, the affordable housing finance arm of HDFC Ltd, in a share swap deal in January.

"We further inform that the resolution to approve the Scheme of Amalgamation was passed with requisite majority by the equity shareholders of the Bank," the Kolkata-based bank said in a regulatory filing.

In April this year, the bank had got nod from the Competition Commission of India (CCI) for the acquisition. The Reserve Bank of India had given its approval in March.

As part of the deal, Bandhan Bank has to transfer 14.9 per cent stake to HDFC for merging Gruh Finance with itself.

The Gruh Finance deal will reduce stake of Bandhan Financial Holdings Ltd in Bandhan Bank to about 61 per cent from the current 82 per cent. HDFC will hold about 15 per cent stake in the merged entity from about 57 per cent in Gruh Finance.

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

Shares of Bandhan Bank on Tuesday closed at Rs 481.05 apiece on the BSE, down 2.22 per cent.