After rising 1,500%, IndusInd bets on microfinance firm buy to extend gains

Acquiring India's largest micro financier gives the bank presence in more than 115,000 villages that will increase its cross-sell, lending and low-cost deposit mobilisation efforts

IndusInd Bank Ltd, India's best performing lender in the past decade, is counting on its acquisition of a microfinance firm to help it improve profitability, while shrugging off risks from the country's spreading shadow bank crisis.  

IndusInd's purchase of Bharat Financial Inclusion Ltd will help it to "move the needle" on profitability parameters including return on assets and lending margins, Chief Executive Officer Romesh Sobti said. Acquiring the nation's largest micro financier gives the bank presence in more than 115,000 Indian villages that will increase its cross-sell, lending and low-cost deposit mobilisation efforts, Sobti said, in an interview in his office.