Bandhan Bank Ltd. agreed to acquire and merge with GRUH Finance Ltd.
The share exchange ratio for the merger will be 568 fully paid up shares of Bandhan Bank for every 1,000 shares of GRUH Finance.
The bank said the merger would generate significant business synergies and will enhance the value proposition of the combined entity, which would be able to leverage the banking and housing finance businesses of the two companies. The merger will also allow Bandhan Bank to boost its housing loan portfolio.
The planned merger is subject to approval from the Reserve Bank of India.
GRUH Finance is a unit of Housing Development Finance Corp. Ltd. A report from Mint said HDFC's stake in the merger entity would drop to 15.44% if the deal pushes through.