Bharat Financial to be merged in IndusInd Bank

New Delhi, Sept 12: A new trend would be created soon. Financial Institutions are in plans to merge themselves into banks. Recently IndusInd Bank has confirmed that it has entered into an exclusivity agreement with Bharat Financial Inclusion Ltd (BFIL) to evaluate merger between the two companies.

BFIL has informed the market regulator SEBI in a filing and said that "The company has entered into an exclusivity agreement with IndusInd Bank for agreeing to have an exclusive discussion with IndusInd Bank about the proposed potential strategic combination by way of amalgamation through a scheme of arrangement, or any other suitable structure".



IndusInd Bank has said that "The exclusivity agreement provides for a mutually agreed exclusivity period for due diligence and discussions to evaluate a potential strategic combination between the company and BFIL".

Many experts have said this merger may create a new trend in financial institutions where many more financial institutions such as chit fund companies merge with banks so that the resources can be managed effectively and more customers can be targeted because of the outreach of banks compared to financial institutions.