Bandhan Bank is looking to reach more people in affordable housing finance segment though merger with Gruh Finance, said Chandra Shekhar Ghosh, MD and CEO of the bank.
Kolkata-based Bandhan Bank will buy housing financier Gruh Finance in a share-swap deal, the companies said on Monday. The merger is subject to approval from the Reserve Bank of India (RBI), Sebi as well as the shareholders.
Post-merger, Bandhan’s promoter holding will come down to 60.12 percent against 82.28 percent currently.
“When I opened the bank, I had decided that each of the area will add to penetrate for growth in future. So we have decided on three areas, one is macro-credit which is of a core focus, second is affordable housing and the third is in MSME. In organic growth we got this opportunity with the Gruh Finance, which is the best one of the best housing finance companies. So on the basis of that platform, we can reach to more people in affordable housing segment,” said Ghosh.