IDFC bank to acquire Grama Vidiyal Micro Finance
IDFC Bank said that it has entered into an agreement to acquire 100% equity shares of Grama Vidiyal Micro Finance.
The share price of IDFC Bank closed up by over 8% on BSE and NSE. See here: http://www.zeebiz.com/market/stocks/idfc-bank-ltd-idfcbank
The move is expected to aid IDFC Bank’s aim to be retail bank with a significant footprint and customer base in five years, said Rajiv Lall, founder MD & CEO of IDFC Bank.
It said that this move will strengthen its reach in both rural and urban areas.
Lall said, The acquisition of Grama Vidiyal not only fast-tracks the build out of a retail network, but with technology intervention, enables the bank to deliver new age banking solution at a scale, thereby financially enriching the live of people in both, rural and urban geographies.
With this acquisition, IDFC Bank will be entitled to reach around 1.2 million rural and semi-urban households. The Grama Vidiyal’s network of 319 locations across 65 districts of Tamil Nadu, Kerala, Karnataka, Pondicherry, Maharashtra, Gujarat and Madhya Pradesh will act as a BC centre for the bank.
As on March 2016, Grama Vidiyal has an AUM (assets under management) of around Rs. 1,502 crore of micro finance assets. All loan assets on the book will be transferred to IDFC Bank.
Members of Grama Vidiyal will receive access to the bank’s innovative and inter-operable Micro ATM, which functions like a ‘Bank-in-a-Box’ allowing customers as well as non-customers to transact dfrom the comfort of their homes and neighbourhoods.