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IndusInd Bank, BFIL sign exclusivity agreement for merger talks

BBR Staff Writer Published 12 September 2017

India-based IndusInd Bank has signed an exclusivity agreement with Bharat Financial Inclusion Limited (BFIL) to carry out discussions for a potential merger of both entities.

The agreement offers an exclusivity period for due diligence and discussions to assess a potential strategic combination between both firms by way of amalgamation through a scheme of arrangement or any other structure.

The deal will allow companies to conduct discussions and finalise terms and conditions relating to the proposed transaction, helping to enter into a definitive documentation after the necessary approvals.

Earlier known as SKS Microfinance, BFIL is a non-banking finance company (NBFC), which secured license from the Reserve Bank of India.

The company offers financial services to the poor people. It provides life assurance and different financial loans, including income generation loans, mid-term loans and long-term loans.

BFIL also offers loans to purchase products such as cook-stoves, solar lights, water purifiers, mobile phones, bicycles and sewing machines. In addition, it provides loans on gold jewellery.

Based in Mumbai, IndusInd Bank provides commercial, transactional and electronic banking products and services for the customers.

The bank, which was established in 1994, is specialized in offering retail banking services.

As of 30 June, IndusInd has 1,004 branches and 1885 ATMs across 625 geographical locations of India. The bank also operates representative offices in London, Dubai and Abu Dhabi.

Image: IndusInd Bank has entered into merger talks with BFIL in India. Photo: courtesy of adamr / FreeDigitalPhotos.net.