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Got RBI nod for Gruh Finance merger: Bandhan Bank

IANS  |  Kolkata 

on Friday said it has received "no objection" from the of (RBI) for the proposed merger of Gruh with it.

"...we would like to inform that the Reserve has by its letter dated March 14, 2019 conveyed its no objection for the voluntary amalgamation of Gruh Ltd into and with Bank, subject to compliance with the terms and conditions therein," the lender said in a regulatory filing.

In January, the city-headquartered Bank said its board of directors had approved merger of the India's leading housing company, with a focus on the affordable housing segment, into the bank.

The merger would help the bank to achieve product and geographic diversification while improving penetration in its core customer segment. On the other hand, the housing finance company would get access to a wider distribution network, a larger customer base and low cost deposit base of the bank.

Post-merger, the shareholding of in the bank would reduce from 82.3 per cent to 61 per cent.

The share exchange ratio accepted by the boards of two entities was 568 equity shares of face value of Rs10 each of to be issued for every 1,000 equity shares of face value of Rs.2 each of Gruh.

Shares of Bandhan Bank on Friday closed at Rs 511.05 a piece, down by 0.45 per cent on the BSE.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 15 2019. 23:38 IST
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