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- IndusInd Bank to Merge with BFIL on July 4
- M.R. Rao, MD & CEO of BFIL to become the CEO of IndusInd Financial Inclusion Ltd (IFIL)
IndusInd Bank has announced that it is planning to merge with Bharat Financial Inclusion on July 4, 2019. The CEO of Bharat Financial Inclusion Ltd (BFIL) will become the CEO of IndusInd Financial Inclusion Ltd (IFIL). Boards of both the companies have agreed on July 4 as the date on which IndusInd Bank, BFIL and IFIL will file the NCLT order with the Registrar of Companies. The NCLT on June 10, 2019, has sanctioned a scheme of arrangement about IndusInd Bank, BFIL and IFIL and their respective creditors and shareholders. Read the post further to know more of IndusInd Bank-BFIL merger.
What Will be the Operational Dynamics After IndusInd Bank-BFIL Merger?
BFIL’s business correspondent network will operate under IFIL. In addition, the assets and liabilities of BFIL will combine with that of IndusInd Bank. The companies have agreed to publish the consolidated quarterly financial results for the Q1 of FY 2019-20 on July 12, 2019.
Strategic Relevance Behind the Merger
IndusInd Bank-BFIL merger have strategic gains in store for both the entities. Ramesh Sobti, MD & CEO, IndusInd Bank, has expressed confidence that the capabilities, talent and distribution prowess of BFIL will help the private lender penetrate into the rural market and play a vital role in building financial inclusiveness in unbanked areas. M.R. Rao, MD & CEO, BFIL, has said that the merger will help their 8.8 million micro finance customers get access to savings, deposits and other banking products. He also expressed confidence that the merger will aid the financial inclusion drive.