The proposed acquisition of Gruh has already got approvals from the Competition Commission of India (CCI), Reserve Bank of India (RBI) and capital market regulator Sebi.
Bandhan Bank has said Gruh Finance would ‘independently’ decide on its growth strategies even after its proposed merger with the private sector bank, which would provide necessary funding and infrastructure supports to the housing finance entity for business growth.
Shareholders of Bandhan Bank on last Tuesday granted approval to the bank’s proposed acquisition of Gruh Finance, the affordable housing finance arm of HDFC. The Kolkata-based bank had decided to take over Gruh in a share swap deal in January this year.
The proposed acquisition of Gruh has already got approvals from the Competition Commission of India (CCI), Reserve Bank of India (RBI) and capital market regulator Sebi. For this acquisition, now final approvals from NCLT’s Kolkata and Ahmedabad benches are required.
In a conference call with investors and analysts, Bandhan Bank MD & CEO Chandra Shekhar Ghosh said: “A lot of preparations have been done” for the merger with a team of the bank and a Gruh team working together on it. “We are waiting only for the approvals from NCLT,” Ghosh added.
To a question on whether Gruh’s business model can be implemented in areas where Bandhan is strongly present, primarily in East and Northeast, he said, “If you see, we have taken this organisation, it does not mean I have been calling them to east and northeast, that is not the objective. We are talking and working together with a Gruh team and our team. And the Gruh team is surveying the area where there is more potential across the country, not only specific in this area.”
Ghosh said after the Gruh team finalise the potential areas to grow, his bank would provided infrastructure, branch, connection and funding supports to the housing finance arm.
On synergies that will be available to Bandhan because of the acquisition, he said it could be an “opportunity for both” from customer acquisitions point of view.
Commenced operations in 1988 from Ahmedabad, Gruh Finance has a retail network of 196 offices across 11 states and one Union Territory.
As on June 30, Bandhan Bank’s network consisted of 999 branches and 3,014 doorstep service centres.