Bharat Financial-IndusInd Bank merger to complete in 4 weeks
Post-merger, microfinance firm Bharat Financial will become a subsidiary of the private lender.
By ETMarkets.com |
Getty Images
The merger between Bharat Financial Inclusion (BFIL) and IndusInd Bank is likely to be completed within 2-4 weeks, according to a report by ETNow.
Post-merger, microfinance firm Bharat Financial will become a subsidiary of the private lender, the report added.
PH Ravikumar, Non-executive chairman, Bharat Financial told ETNow that the company can play a crucial role in IndusInd Bank’s rural push.
Ravikumar also added that BFIL operates in very small hamlets. It’s 75-80 per cent of book comes from rural area.
“We are seeing strong response for 2-wheeler loans,” he said.
The merger was announced on October 14, 2018.
The country's largest microfinance company reported a net profit of Rs 162.6 crore for the quarter to December, compared with Rs 142.8 crore in the year ago period. Its gross loan portfolio grew 34% year on year to Rs 11,466 crore.
It announced improvement in cumulative collection efficiency to 99.8% for loans disbursed after December 2016, which constitutes 89% of its loan portfolio.
The company has written off loans worth Rs 17.7 crore in the December quarter helping it to reduce gross non performing assets to 4.6% from 5.2% in the preceding quarter.
Post-merger, microfinance firm Bharat Financial will become a subsidiary of the private lender, the report added.
PH Ravikumar, Non-executive chairman, Bharat Financial told ETNow that the company can play a crucial role in IndusInd Bank’s rural push.
Ravikumar also added that BFIL operates in very small hamlets. It’s 75-80 per cent of book comes from rural area.
“We are seeing strong response for 2-wheeler loans,” he said.
The merger was announced on October 14, 2018.
ADVERTISEMENT
The country's largest microfinance company reported a net profit of Rs 162.6 crore for the quarter to December, compared with Rs 142.8 crore in the year ago period. Its gross loan portfolio grew 34% year on year to Rs 11,466 crore.
It announced improvement in cumulative collection efficiency to 99.8% for loans disbursed after December 2016, which constitutes 89% of its loan portfolio.
The company has written off loans worth Rs 17.7 crore in the December quarter helping it to reduce gross non performing assets to 4.6% from 5.2% in the preceding quarter.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
India’s biggest lender backs another wave of bank mergersADVERTISEMENT
