Edelweiss Securities is bullish on the \u00a0shares of IndusInd Bank after the private lender announced its merger with Bharat Financial Inclusion. The research and brokerage firm has a target price of Rs 1,920 on Indusind Bank shares. The scrip was trading at Rs 1,721.2, down by more than 1.7% since Friday\u2019s close. The target price implies an upside of more than 11% from the current market prices. The swap ratio announced by the companies was above market expectations, as Bharat Financial Inclusion shareholders will get 0.639 share of IndusInd Bank for every one share they own in BFIL. Earlier, analysts had anticipated a ratio of 0.57:1. However, Edelweiss says that the merger will be EPS accretive for IndusInd Bank. \u201c The merger will be 2-3% EPS accretive in FY19,\u201d the research firm said in a note. On Saturday, IndusInd Bank said in a notice, \u201c Combined business create meaningful value for stakeholders through increased scale, wider product diversification, lower funding cost, stronger balance sheet and ability to drive synergies across revenue opportunities, operating efficiencies and underwriting efficiencies." Earlier, Romesh Sobti, MD and CEO of IndusInd Bank had told ET Now, explaining the synergies, \u201cAs far as Bharat Financial is concerned, they become a bank. Therefore, that gives a huge boost to the cost of liabilities, which means there\u2019s a massive pricing differential in terms of cost of funds in the bank, which runs into 100 basis points lower.\u201d On Saturday, Ramesh Sobti said, \u201cInorganic or organic does not make a difference. We have stuck around even if many people have run away. We have shown faith in the industry. Now after some turbulence we are back to normal levels of disbursements. This is a livelihood creating business and we like livelihood creating businesses." IndusInd Bank shares have returned more than 58% in the year so far, as opposed to BSE Sensex returns of 22% since January. There have been a slew of deals between private sector lenders and MFIs as the former eye to expand their network in the hinterland which will help them meet the priority sector lending mandates and offer cross-sell opportunities.