Bandhan Bank gets RBI approval to acquire Gruh Finance

Shares of Bandhan Bank and Gruh Finance fell in early trade on Monday after receiving approval from the Reserve Bank of India for the amalgamation of Gruh Finance.

Gruh Finance is engaged in housing finance and is a subsidiary of HDFC Limited. Under this deal, shareholders of Gruh Finance will receive 568 shares of Bandhan Bank for every 1,000 shares of the housing finance company. Bandhan bank received the 'No Objection' from the RBI for the proposed scheme of amalgamation with GRUH Finance, the bank informed the exchanges post-market on Friday.

Bandhan Bank will have to transfer 14.9 per cent stake to HDFC. This will lead to a decline in promoter holding of Bandhan Bank from 82 per cent to around 61 per cent.

Reacting on the announcement, the stock of Bandhan Bank fell by nearly 3 per cent and made an intraday low at Rs. 494 per share on the BSE. Also, the stock of Gruh Finance fell by 4 per cent and made an intraday low at Rs. 271 per share on the BSE during Monday's morning session.