Bandhan Bank Ltd. on Friday said it has received no objection certificate from the Reserve Bank of India for the proposed acquisition of Gruh Finance Ltd.
“The Reserve Bank has by its letter dated March 14, 2019, conveyed its no objection for the voluntary amalgamation of Gruh Finance into and with Bandhan Bank, subject to compliance with the terms and conditions therein,” the bank said in a regulatory filing.
Gruh Finance, the affordable housing finance arm of HDFC Ltd., was taken over in January by Kolkata-based Bandhan Bank in a share-swap deal.
In a separate release, HDFC said that it received the central bank's approval to acquire up to 9.9 percent stake in Bandhan Bank. The Deepak Parekh-led firm had sought the regulator's permission to hold up to 15 percent in Bandhan Bank post merger with Gruh Finance.
As per the original terms of the deal, Bandhan Bank's promoter Bandhan Financial Holdings' stake was to come down to about 61 percent from about 82 percent, and HDFC was to hold around 15 percent in the merged entity from about 57 percent in Gruh.
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