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IndusInd Bank gets RBI nod for setting up arm for BFIL merger

Press Trust of India  |  New Delhi 

The Reserve has allowed to incorporate a wholly-owned subsidiary for the amalgamation of micro-lender Financial Inclusion (BFIL) with the

in a filing to said the RBI has, vide a letter dated June 8, 2018, "conveyed its approval for incorporation of a wholly-owned subsidiary of the bank, as part of the amalgamation of BFIL with the bank".

Earlier on Tuesday, and Financial Inclusion, formerly SKS Microfinance, had informed that that they had got approval from stock exchanges for their proposed merger, paving the way to file the draft scheme of amalgamation.

The bank had received the RBI's no-objection to the proposal on March 13, 2018. It received approval from the Competition Commission of for the proposed on December 19, 2017.

"The scheme remains subject to approval from the Tribunal shareholders, creditors of BFIL & the bank," IndusInd Bank said.

BFIL in a separate filing too said that the RBI has conveyed its approval for incorporation of a wholly-owned subsidiary of IndusInd Bank for its amalgamation.

The bank will acquire BFIL through an all-stock transaction.

As on March 31, 2018, IndusInd Bank had 1,400 branches, and 2,203 ATMs spread across 713 geographical locations of the country.

Catering mainly to the economically weaker sections of the society, BFIL has presence across 16 states covering one lakh villages.

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

First Published: Fri, June 08 2018. 22:05 IST