Bandhan Bank gets Competition Commission approval to acquire Gruh Finance

Kolkata-based Bandhan Bank on Tuesday said it has received approval of the Competition Commission of India (CCI) for the proposed acquisition of Gruh Finance

Press Trust of India April 16, 2019 19:44:25 IST
Bandhan Bank gets Competition Commission approval to acquire Gruh Finance
  • Gruh Finance, the affordable housing finance arm of HDFC Ltd, was taken over in January by Bandhan Bank in a share-swap deal

  • Last month, the private sector lender received a nod in this regard from the Reserve Bank of India

  • As part of the deal, Bandhan Bank has to transfer 14.9 percent stake to HDFC for merging Gruh Finance with itself

Mumbai: Kolkata-based Bandhan Bank on Tuesday said it has received approval of the Competition Commission of India (CCI) for the proposed acquisition of Gruh Finance.

Gruh Finance, the affordable housing finance arm of HDFC Ltd, was taken over in January by Bandhan Bank in a share-swap deal.

Last month, the private sector lender received a nod in this regard from the Reserve Bank of India.

Bandhan Bank gets Competition Commission approval to acquire Gruh Finance

Representational image. Reuters.

"The Competition Commission of India has by way of its letter dated 15 April, 2019, intimated that CCI, at its meeting held on 15 April, 2019, considered the proposed combination and approved the same," the bank said in a regulatory filing.

As part of the deal, Bandhan Bank has to transfer 14.9 percent stake to HDFC for merging Gruh with itself.

The deal will allow Bandhan Bank's promoter Bandhan Financial Holdings' shareholding to come down to about 61 percent from about 82 percent, and HDFC to hold around 15 percent in the merged entity from about 57 percent in Gruh.

The swap ratio for the amalgamation would be 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.

Shares of Bandhan Bank closed at Rs 558.10 apiece on the BSE, up 4.72 percent.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Centre says COVID-19 vaccine distribution via 'special immunisation programme'; active cases remain under 7 lakh
India

Centre says COVID-19 vaccine distribution via 'special immunisation programme'; active cases remain under 7 lakh

The Union health ministry also said that the number of new cases reported in the country remained below 60,000 for the fifth consecutive day

RBI governor Shaktikanta Das says second COVID-19 wave one of key risks to India's economic recovery
India

RBI governor Shaktikanta Das says second COVID-19 wave one of key risks to India's economic recovery

Shashanka Bhide, a member of the Monetary Policy Committee, also said uncertainties relating to COVID-19 will impact growth and inflation scenarios in the next two to three quarters

Centre waives interest on interest on loans up to Rs 2 cr, issues operational guidelines
India

Centre waives interest on interest on loans up to Rs 2 cr, issues operational guidelines

The scheme will be available irrespective of whether moratorium was availed or not, and will cover housing loans, education loans, credit card dues, auto loans, MSME loans, consumer durable loans and consumption loans