Fair trade regulator CCI has approved the scheme of amalgamation between IndusInd Bank and Bharat Financial Inclusion. (Image Credit: IndusInd)

Fair trade regulator CCI has approved the scheme of amalgamation between IndusInd Bank and Bharat Financial Inclusion. The Competition Commission of India (CCI) intimated that the commission in its meeting held today considered the proposed combination and approved the same, a regulatory filing on stock exchanges by both companies said. The scheme remains subject to the receipt of approval from the RBI and regulatory approval including approvals of the stock exchanges, Sebi, the National Company Law Tribunal and respective shareholders, it said. IndusInd Bank in October decided to acquire country’s leading microfinance player Bharat Financial Inclusion Ltd (BFIL). The merger will be effected through an all-stock transaction of BFIL into IndusInd through a Composite Scheme of Arrangement.

Post merger, the new entity will have 4,000 branches and outlets and 16 million customers. The appointed date for the composite scheme is January 1, 2018. BFIL, formerly SKS Microfinance, had a customer base of 68 lakh and loan portfolio of Rs 7,709 crore as of June 30. However, the microfinance company suffered a loss of Rs 37 crore for the quarter to June as against Rs 236 crore in the same period a year ago. For 2016-17, the company had recorded a profit of Rs 290 crore.