Merger with BFIL to increase customer base, aid cross-sell of products: IndusInd Bk

Romesh Sobti, MD & CEO, Indusind Bank in an interview to CNBC-TV18 talks about the merger with Bharat Financial Inclusion (BFIL) and what it means for the bank and their various businesses and products.

Sobti said one of the most exciting parts of this proposition is the acquisition of 68.5 lakh customer base of BFIL, their wide coverage of 320 districts and reach of 100000 villages, which other would have taken us half a decade.

He said the merger would take around 9-10 months to complete.

The bank will also see a substantial increase in number of recurring deposits. So, there is huge potential not only in terms of deposits but also cross-sell of other products, said Sobti.

Talking about the MFI business he said the MFI models of both are the same, both the companies follow join liability group model.

The MFI book will be in single-digits of overall loan book, for three years from now. Today it is around 2.5- 3 percent of and post the merger it will be around 6 percent of the total balance sheet.

The effective date of merger of the balance sheet is January 1, 2018.

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