Private lender IndusInd Bank has initiated talks to explore merger options with Bharat Financial Inclusion ltd (BFIl) — the country’s second-largest microfinance company — a move that would help increase the bank's size and reach.
The announcement comes two months after another private lender IDFC Bank and Shriram Capital agreeing to examine the merger possibility with a view to creating one of the country's largest retail banks, which could be valued at over Rs 65,000 crore. BFIl, formerly SKS Microfinance, had a customer base of 68 lakh and loan portfolio of Rs 7,709 crore as of June 30.
However, the microfinance company suffered a loss of Rs 37 crore for the quarter to June as against Rs 236 crore in the same period a year ago. For 2016-17, the company had recorded a profit of Rs 290 crore. If the deal goes through, the merger will take place with a share swap as both are listed.