The transaction, if happens via a share swap is likely to create a combined entity with assets of about Rs 1.26 lakh crore and a customer base of about 1.7 crore. IndusInd Bank will get an opportunity to tap the rural market for deposits while also allowing the bank to expand the customer base for its loan products.
An additional benefit could be of an amplified proportion of priority sector loans (PSL). IndusInd could use the excess PSL portfolio to earn fee via the sale of PSL certificates, which is now permitted.
Bharat Financial Inclusion has cleaned up its books in the past few quarters, therefore IndusInd would have good quality assets, believe market experts. Swap ratio for the said agreement is yet to be announced.
|Bharat Financial Inclusion||IndusInd Bank||Merged entity|
|MFI Book||Rs 9,631 crore||Rs 3,000 crore||Rs 12,631 crore|
|Loan Book||Rs 9,631 crore||Rs 1,16,407 crore||Rs 1,26,038 crore|
|MFI Book share in loan book||100%||2.2%||10%|
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