Private sector lender Bandhan Bank on Thursday said it's waiting for Securities and Exchange Board of India (Sebi) approval for completion of the merger with Gruh Finance, which it acquired in January.
In an interview to CNBC-TV18, Chandra Shekhar Ghosh, managing director and chief executive officer, said, "There is a huge scope for growth in that space as around 106 million families still remain eligible for getting micro-credit. The main chunk of growth comes from new customer acquisition. The aim is to attract new customers who aren’t getting credit from the formal sector."
As part of the deal, Bandhan Bank has to transfer 14.9 percent stake to HDFC for merging Gruh with itself.
The deal will allow Bandhan Bank's promoter Bandhan Financial Holdings to come down to about 61 per cent from about 82 percent, and HDFC to hold around 15 percent in the merged entity from about 57 percent in Gruh.
The swap ratio for the amalgamation will be 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.