Chennai: Gruh Finance Ltd is all set to merge with Bandhan Bank Ltd in a share-swap deal, reports have stated. The effective date of the merger shall be 1 January.
The boards of both lenders met separately on Monday, where it approved the ‘merger co-operation agreement’, according to the housing finance company’s exchange filing. The merger will be subject to regulatory approvals.
The deal follows the Reserve Bank of India’s decision to impose strictures on Bandhan Bank for failing to reduce promoter shareholding as per the agreed regulatory timeline.
The merger will help reduce the stake of Kolkata-based bank’s promoter entities, while giving HDFC – the largest shareholder in Gruh Finance – a 14.96 per cent stake in the combined firm.
The merger is a ‘win-win’ deal for both Gruh and Bandhan Bank, said non-executive chairman of HDFC, Deepak Parekh.