IndusInd Bank said microfinance institution Bharat Financial Inclusion has merged with it. The boards of directors of the two institutions had earlier approved the merger with a view to create a stronger and more sustainable platform for financial inclusion. Romesh Sobti, MD and CEO, IndusInd Bank, said the merger is a natural progression of a long-standing relationship and mutual admiration between the two institutions. The combination brings together entities with significant complementary strengths and huge synergistic advantages, making it a win-win proposition for all stakeholders from inception, he added. M.R. Rao, MD and CEO, Bharat Financial Inclusion said its 6.8 million customers would now have access to savings, deposits and other financial products, which will mean completion of the financial inclusion offering. He mentioned the company’s network, client base and last-mile customer access to 100,000 villages are unique. The merger will be effected through an all-stock transaction of Bharat Financial Inclusion into IndusInd Bank through a composite scheme of arrangement. The scheme envisages simultaneous transfer of Bharat Financial Inclusion’s BC operations into a wholly owned subsidiary of IndusInd Bank, which shall be incorporated after receipt of requisite regulatory approvals. Shareholders of Bharat Financial Inclusion will receive 639 shares of IndusInd Bank for every 1000 shares held by them and all the employees of Bharat Financial Inclusion will become part of IndusInd Bank.
