CCI clears IndusInd-Bharat Financial merger1 min read . Updated: 19 Dec 2017, 09:56 PM IST
The merger will be effected through an all-stock transaction of BFIL into IndusInd through a composite scheme of arrangement
New Delhi:Fair trade regulator Competition Commission of India (CCI) has approved the scheme of amalgamation between IndusInd Bank and Bharat Financial Inclusion.
CCI intimated that the commission in its meeting held on Tuesday considered the proposed combination and approved the same, a regulatory filing on stock exchanges by both companies said. The scheme remains subject to the receipt of approval from the Reserve Bank of India (RBI) and regulatory approval including approvals of the stock exchanges, Securities and Exchange Board of India (Sebi), the National Company Law Tribunal (NCLT) and respective shareholders, it said.
IndusInd Bank in October decided to acquire country’s leading microfinance player Bharat Financial Inclusion Ltd (BFIL). The merger will be effected through an all-stock transaction of BFIL into IndusInd through a composite scheme of arrangement.
Post merger, the new entity will have 4,000 branches and outlets and 16 million customers. The appointed date for the composite scheme is 1 January 2018. BFIL, formerly SKS Microfinance, had a customer base of 68 lakh and loan portfolio of Rs7,709 crore as of 30 June.
However, the microfinance company suffered a loss of Rs37 crore for the quarter to June as against Rs236 crore in the same period a year ago. For 2016-17, the company had recorded a profit of Rs290 crore.