Bandhan Bank, Gruh Finance shares crack amid merger buzz

NEW DELHI: Shares of Bandhan Bank cracked over 4 per cent on the BSE on Monday, wiping off all the early gains, amid reports that the merger of Gruh Finance and Bandhan Bank has reached an advanced stage.

Shares of Gruh Finance were on a shaky pitch after slipping about half a per cent.

Both stocks advanced by 3 per cent in the beginning, but the rally soon fizzled out even as broader Sensex and Nifty moved in the higher orbit.


Bandhan Bank's talks with HDFC to either buy into or merge with Gruh Finance, a mortgage-lender for the less affluent, have reached an advanced stage, although the regulatory response to the proposal would decide the fate of the transaction, two people familiar with the matter told ET.

Gruh Finance has a market capitalisation of Rs 23,337 crore while Bandhan Bank is valued at Rs 63,000 crore, according to Friday’s closing.

Bandhan Bank is set to declare its December quarter earnings this Thursday.

Around 11:20 am, shares of Bandhan Bank were down 2.96 per cent at Rs 513 while those of Gruh Finance hit Rs 319, up 0.16 per cent.