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The merger of Bharat Financial Inclusion (BFIL) with IndusInd Bank (IBL) will take six-nine months for closure.
The transaction has already received the approval of Reserve Bank of India and Competition Commission of India, BFIL said in an investor presentation. According to the scheme of arrangement for the merger, which was announced in mid-October 2017, BFIL shareholders will receive IBL’s shares as consideration.
The share exchange ratio has been set at 639 shares of IBL for 1,000 BFIL shares.
The scheme of arrangement contemplates the merger of BFIL with IBL and simultaneous transfer of BFIL’s Business Correspondent (BC) operations into a wholly-owned subsidiary (WOS) of IBL. All the assets and liabilities originated by the BC-WOS will be booked in the balance sheet of IBL.
BFIL, in its notes to the statement of financial results, said necessary applications for approval by the Securities and Exchange Board of India, the BSE and the NSE have been submitted to the stock exchanges on March 28, and the same are pending disposal as on April 23, 2018.
BFIL reported a 29 per cent quarter-on-quarter increase in net profit at ₹211 crore in the fourth quarter ended March 31, 2018, against ₹163 crore in the December quarter.
In the March 2017 quarter, the micro finance institution had reported a net loss of ₹235 crore.
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