IndusInd Bank Confirms It Is In Talks With BFI

Clarifying its position, IndusInd Bank said that its planning for business expansion and its already in talks with multiple entities for the same, including Bharat Financial Inclusion Limited (BFI).

The bank has also informed that its management has been exploring strategic options and is in discussions from time to time with different parties.
The statement has been issued to bourses following media reports talking about IndusInd and BFI (formerly SKS Microfinance) merger in an all stock-deal, As the bank has said, its management is authorised to look for the strategic opportunities for the expansion, adding further that no decision has been taken yet regarding this. The private sector lender also called certain media reports as 'speculative.'

There is been a slew of deals between the private sector lenders and MFIs with the eye on expanding their network in the hinterland which may help them to meet the priority sector lending targets.

If this merger fructifies, it is going to be the third deal for Induslnd Bank after acquisition of the Deutsche Bank’s credit card portfolio in 2011 and RBS’s diamond financing book in 2015. Other banks like IDBI Bank, Kotak and RBL either acquired or have taken the minority stake in MFIs in the past 18 months.

The duo has seen a rally this year, the stocks today corrected 0.26 percent and 1.40 percent respectively on Sensex.

IndusInd Bank as of 12 pm on Friday is trading at Rs 1329 per share up by Rs 3 per share or 0.2%, while Bharat Financial Inclusion is trading at Rs 842 per share up by Rs 2.5 per share or 0.3% on the NSE.

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