Bandhan Bank soars 20% on MSCI entry; Gruh Finance jumps 15%

Shares of Bandhan Bank jumped 20 per cent to hit the upper circuit limit in early trade on Friday amid reports that the stock will be added to the MSCI index. Gruh Finance, which is soon to be merged with Bandhan Bank, also jumped 15 per cent.

“Bandhan Bank is getting added to the MSCI index effective 16th October on effect of Gruh Finance getting merged with Bandhan Bank,” Motilal Oswal said in a tweet.



The Kolkata-based private lender closed 15.08 per cent higher at Rs 583.40 on BSE. Gruh Finance closed up 11.04 per cent at Rs 302.85.

The National Company Law Tribunal (NCLT) recently cleared the scheme of amalgamation between Bandhan Bank and Ahmedabad-based Gruh Finance.

The scheme was approved by NCLT's Kolkata and Ahmedabad benches. Thursday, 17 October 2019 has been fixed as the record date following the effectiveness of scheme for determining shareholders of the merged entity.

Bandhan Bank's merger with Gruh Finance will help the Kolkata-based private lender diversify its loan portfolio of Rs 45,400 crore, which is heavily skewed towards micro loans with 85 per cent share.