Gruh Finance announced its merger with Bandhan Bank

Gruh Finance, the finance arm of HDFC, will be merged with Bandhan Bank, the newest commercial bank. The move would help the Bandhan Bank to cut promoter stake from 82.3% to 61%.
Vamsi Athreya

Last Updated: Jan 08,2019 15:01 IST

Gruh Finance announced its merger with Bandhan Bank

08 January 2019 Current Affairs:

Gruh Finance, the affordable housing finance arm of HDFC, will be merged with Bandhan Bank, the newest commercial bank. The move would help the Bandhan Bank to cut promoter stake from 82.3% to 61%.
According to the deal, 568 equity shares of face value of Rs.10 each of Bandhan Bank is to be issued for every 1,000 equity shares of a face value of Rs.2 each of Gruh. The deal is subject to regulatory approvals. The swap ratio implies a 2.05% premium to the shareholders of Gruh. The combined entity is valued at Rs.84,000 crore. Post the deal, HDFC will have 14.9% stake in Bandhan Bank.
The move comes after the restrictions imposed by Reserve Bank of India (RBI) on Bandhan in terms of branch expansion and the remuneration of its MD & CEO Chandra Shekhar Ghosh, for inability to bring down promoter stake to 40% within three years of starting operations.

Free Current Affairs to Your Email

Daily Current Affairs 2019



Subscribe to Current Affairs

Enter your email to get daily Current Affairs
Current Affairs PDF

Current Affairs 2019 December

December 16
News Quiz
December 15
News Quiz
December 14
News Quiz
December 13
News Quiz

Current Affairs 2019 November

November 30
News Quiz
November 29
News Quiz
November 28
News Quiz
November 27
News Quiz

Current Affairs 2019 October

October 31
News Quiz
October 30
News Quiz
October 29
News Quiz
October 28
News Quiz