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RBI clears IndusInd Bank-Bharat Financial merger

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Now, erring bank auditors to face punitive action from RBI

It can be noted that serving and retired CMDs/MDs/CEOs of as many as six public sector banks have been arrested by various law enforcement agencies in the recent past for unlawful/violating the board-approved lending norms.

Private lender IndusInd Bank today said the Reserve Bank has approved the merger of Bharat Financial Inclusion Limited with the bank.

The Reserve Bank of India has, vide its letter dated March 13, 2018, conveyed its "no objection" for the voluntary amalgamation of BFIL with the Bank, subject to compliance with certain terms and conditions, IndusInd Bank said in a filing to BSE.

The scheme remains subject to the receipt of approval from the stock exchanges, Sebi, the National Company Law Tribunal, the respective shareholders and creditors of BFIL and the Bank and other applicable statutory and regulatory approvals, it added.

IndusInd Bank in October last year decided to acquire the country's leading micro-finance player Bharat Financial Inclusion Ltd (BFIL).

The merger will be effected through an all-stock transaction of BFIL into IndusInd through a Composite Scheme of Arrangement.

Post merger, the new entity will have 4,000 branches and outlets and 16 million customers.