IDFC Bank has acquired Trichy-based Grama Vidiyal Microfinance for a deal is estimated at nearly Rs 300 crore. This is the first time an Indian bank acquiring a microfinance institution. Grama Vidiyal has over 12 lakh customers and an asset book of Rs 1502 crore. All loan assets on the book will be transferred to IDFC Bank. Grama Vidiyal has over 319 branches across seven states and 65 districts of Tamil Nadu, Kerala, Karnataka, Puducherry, Maharashtra, Gujarat and Madhya Pradesh. It has over 3000 employees. Its annual profit is nearly Rs 60 crore and has a loan recovery rate of 99.99%. IDFC Bank MD Rajiv Lall said Grama Vidiyal would become a dedicated banking correspondent and a 100% subsidiary of IDFC Bank. The deal gives IDFC Bank an extraordinary reach in a very short period of time to a very large customer base and it creates a platform for growth of retail banking business, he said.
