IndusInd Bank may acquire Bharat Financial Inclusion, the erstwhile SKS Microfinance. According to news reports, the deal will be made through a share swap between the two entities. The bank has been trying to grow the MFI book since last 5 years and as of now it forms about 2.5%-3% of its existing loan book. The bank feels that merging Bharat Financial would mean ability to meet priority sector lending norms easily and access to a wide distribution network in rural India. The bank is also intending to grow its microfinance book to Rs 10,000 crore in the next 3 years. As of December 2016, Bharat Financial assets under management stand at Rs 8531 crore. The promoter is holding just 1.66% and the rest by the public. Most of the key shareholders are institutional clients.
