Hinduja Group promoted IndusInd Bank has agreed to take over local micro-finance firm Bharat Financial Inclusion (BFIL) as part of plan to expand its rural network.

Under the agreement, BFIL shareholders will receive 639 shares of IndusInd Bank for every 1,000 shares of BFIL.

Post acquisition, the assets and liabilities of BFIL will go into the balance sheet of IndusInd Bank and BFIL will be integrated with the bank.

BFIL’s business operations will be transferred to the wholly owned subsidiary of IndusInd Bank.

The combined entity will have a network of 3,600 branches and a customer base of 16.3 million.

The acquisition will also add 1,400 micro-finance institutions to IndusInd Bank’s network.

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IndusInd Bank managing director and CEO Romesh Sobti said the merged entity will have 40,000 employees and all the 15,000 employees of BFIL will continue in their current roles.

Sobti added: “This Merger is a natural progression of a long-standing relationship and mutual admiration between the two institutions.

“The combination brings together entities with significant complementary strengths and huge synergistic advantages, making it a win-win proposition for all stakeholders from inception.”

IndusInd Bank had reportedly entered into exclusive talks with Bharat Financial for the acquisition in September 2017.