Indusind clinches takes over Bharat Financial

Source: The Hitavada      Date: 15 Oct 2017 09:56:36


MUMBAI,

Oct 14,

(PTI),

ENDING months of speculation, Indusind Bank and the second largest microlender Bharat Financial Inclusion (BFIL) on Saturday announced largest merger in the MFI space in an all-share deal, which will help the private sector lender push its rural network and bring down credit cost for small borrowers.

The merger, which will add 6.8 million customers to Indusind’s 10 million now, and which comes amid a slew of similar announcements involving the urban-focused new age private sector lenders such as Kotak Bank and IDFC Bank, will also help reduce cost of lending for micro borrowers as cheaper deposits can be used to fund their credit needs. “The biggest gain for us is the rural network. It will also us help reduce cost of funds by 3-4 per cent,” Indusind Bank Managing Director and Chief Executive Ramesh Sobti said.