The untold story behind IndusInd Bank-Bharat Financial merger
Bharat Financial's earlier avatar SKS's quest to become a bank started in right earnest from the day it realized that once small finance banks are in place, it would be difficult to successfully run the microfinance business
Seven years ago, on 11 October 2010, the Andhra Pradesh government notified an ordinance that almost killed SKS Microfinance Ltd (SKS), now known as Bharat Financial Inclusion Ltd (BFIL). On the same date in 2017, the boards of BFIL and IndusInd Bank Ltd (IndusInd) approved the merger of the two entities, giving yet another lease of life to India’s largest micro lender, albeit in a different form. Following the Rs15,486 crore all-stock deal, for every 1,000 BFIL shares held, an investor in IndusInd will get 639 shares of the bank. None of BFIL’s 15,284 employees will lose their jobs, at least for the first three years after the merger is formalized, which is likely to happen by July 2018.