IndusInd Bank announces merger with Bharat Financial

Mumbai Oct 14: IndusInd Bank on Saturday has announced the merger of microfinance lender Bharat Financial Inclusion (BFIL). The deal is subject to approvals from the Reserve Bank of India, market regulator Securities and Exchange Board of India and Competition Commission of India.

The deal assumes significance because earlier the bank informed the stock exchange that they have entered into exclusive merger talks with Bharat Financial.

The composite scheme, which will be effective from January 1, is between IndusInd, BFIL and a wholly owned subsidiary of the bank.

"The scheme will explore amalgamation of the bank with BFIL without winding up the latter company," IndusInd said.

According to the deal, Bharat Financial shareholders will get 639 shares of the bank for every 1,000 held.