IndusInd Bank on Wednesday said 4 July, 2019 will be the effective date of the merger with Bharat Financial Inclusion Ltd (BFIL). M R Rao, current CEO of BFIL, will become the CEO of IndusInd Financial Inclusion Ltd (IFIL).
The boards of IndusInd and BFIL decided that on 4 July the NCLT Order will be filed by the lender, BFIL and IFIL with the Registrar of Companies. on 10 June, 2019, NCLT sanctioned the scheme of arrangement about BFIL, IndusInd and IFIL and their respective shareholders and creditors.
The Business Correspondent network of BFIL will operate under IFIL.
Assets and liabilities of BFIL will be merged with IndusInd's balance sheet.
Consolidated financial results for the first quarter of FY19 will be published on 12 July, 2019.
Commenting on the effectiveness of the scheme, Romesh Sobti, MD & CEO, IndusInd Bank said: "IndusInd Bank embarked on its transformational Rural strategy over 3 years ago, the Scheme of Arrangement with BFIL being the anchor point. We are delighted that the talent, capabilities and distribution of BFIL will enable the Bank to play a more meaningful role in Rural India fulfilling our ambition of building financial inclusiveness and sustainability in large swathes of unbanked and underbanked India."
M R Rao, MD & CEO, BFIL, said, "The merger with IndusInd Bank Limited will enable our 8.8 million microfinance customers to access savings, deposits and other banking products. The merger will help us boost financial inclusion in its truest form."