IDFC Bank surges over 8% on acquisition of TN-based MFI

Shares of IDFC Bank today soared over 8 per cent after the company announced the acquisition of Tamil Nadu-based Grama Vidiyal Microfinance that will help it widen the reach.
The stock climbed 8.42 per cent to settle at Rs 52.15 on BSE. During the day, it jumped 12 per cent to Rs 53.90.
On NSE, shares of the company surged 8.22 per cent to end at Rs 52.
On volume front, 41.52 lakh shares of the company were traded and over two crore shares changed hands at NSE during the day.
Acquisition for an undisclosed sum, offers the bank access to 1.2 million households apart from adding 319 points of presence in seven states -- Tamil Nadu, Kerala, Karnataka, Puducherry, Maharashtra, Gujarat and Madhya Pradesh.

The bank said the three-decade old Trichy-based Grama Vidiyal will be its wholly-owned subsidiary and will act as a dedicated business correspondent of IDFC Bank.
Grama Vidiyal's had an AUM of Rs 1,502 crore of micro finance assets as of March, and employs over 3,000 people. All loan assets on the book will be transferred to IDFC Bank.