IDFC Bank snaps up TN-based MFI Grama Vidiyal

Private sector lender IDFC Bank announced the acquisition of Tamil Nadu-based Grama Vidiyal Microfinance that will help it widen the reach.Acquisition for an undisclosed sum, offers the bank access to 1.2 million households apart from adding 319 points of presence in seven states -- Tamil Nadu, Kerala, Karnataka, Puducherry, Maharashtra, Gujarat and Madhya Pradesh.The bank said the three-decade old Trichy-based Grama Vidiyal will be its wholly-owned subsidiary and will act as a dedicated business correspondent of IDFC Bank.Grama Vidiyal's had an AUM of Rs 1,502 crore of micro finance assets as of March, and employs over 3,000 people. All loan assets on the book will be transferred to IDFC Bank."The acquisition of a micro-finance institution by a bank is an industry first," said Rajiv Lall, founder MD and CEO of IDFC Bank.Grama Vidiyal Chairman S Devaraj said the deal is to achieve a common objective of transforming the lives and advancing livelihoods in rural areas and underserved segments.