Bandhan buys Gruh Finance

Bandhan buys Gruh Finance

BE/RBINOTE/17/2019

Bankdhan Bank

Bankdhan Bank, the new generation Private Sector Bank has received NO OBJECTION from the Regulator Reserve Bank of India, for their proposed acquisition of GRUH FINANCE.

  • RBI has in its letter dated March 14, 2019, communicated that it has no objection in Bandhan Bank acquiring Gruh Finance
  • RBI also stated that this amounts to the voluntary amalgamation of Gruh Finance with Bandhan Bank
  • RBI added that necessary terms and conditions should be complied with.

History:

Gruh Finance the affordable Housing Finance unit of HDFC was taken over in January this year by Kolkata based Bandhan Bank, in a share swap deal.

The deal revealed that Bandhan Bank’s promoter Bandhan Financial Holdings’ stake would come down to about 61 percent from 82% and HDFC will hold around 15% in the merged entity, as compared to about 57% in Gruh Finance.

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