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Last Updated : Jan 07, 2019 05:06 PM IST | Source: Moneycontrol.com

Bandhan Bank falls over 5% amid reports of bank buying Gruh Finance

Bandhan Bank is set to acquire Gruh Finance, the affordable home loan subsidiary of Housing Development Finance Corporation (HDFC), via a $12 billion share swap, media reports suggest.

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2. Bandhan Bank | Return: 50.32% | Issue size: Rs 4473 crore | Listing date: March 27, 2018 | Subscription ratio: 14.63 | Bandhan Bank is a subsidiary of Bandhan Financial Holdings which in turn is a subsidiary of Bandhan Financial Services.
2. Bandhan Bank | Return: 50.32% | Issue size: Rs 4473 crore | Listing date: March 27, 2018 | Subscription ratio: 14.63 | Bandhan Bank is a subsidiary of Bandhan Financial Holdings which in turn is a subsidiary of Bandhan Financial Services.
 
 
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Shares of Bandhan Bank fell over 5 percent as investors reacted to media reports of the lender buying Gruh Finance in a share swap deal.

Bandhan Bank is set to acquire Gruh Finance, the affordable home loan subsidiary of Housing Development Finance Corporation (HDFC), via a $12 billion share swap, media reports suggest.

A formal announcement on the same could come as early as today evening or January 8, as per a report from The Times of India.

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Sources quoted in a report by Mint said that the move is aimed at paring down Bandhan Bank’s founder and CEO Shekhar G's holding to 60.27 percent in line with the regulator’s banking licence rules and expanding its housing finance portfolio.

The rules require Bandhan Financial Holdings to halve its stake to 40 percent from 82.3 percent within three years of starting business. In September 2018, it had placed restrictions on the bank for failing to meet these rules by freezing branch expansion and Ghosh’s remuneration.

Moneycontrol couldn’t independently verify the reports.

At the close of market hours, Bandhan Bank was quoting at Rs 501.10, down Rs 27.55, or 5.21 percent, on the BSE.

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First Published on Jan 7, 2019 05:06 pm
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