CCI approves merger of Bharat Financial with Indusind Bank


Merger
Competition Commission of India (CCI) approved the proposed amalgamation of Bharat Financial Inclusion Limited with IndusInd Bank Limited.

The Scheme remains subject to the receipt of approval from the Reserve Bank of India and other statutory and regulatory approvals, including the approvals of the Stock Exchanges, SEBI, the National Company Law Tribunal, and the respective shareholders and creditors of BFIL and the Bank. IndusInd Bank to react positive on this news as the Amalgamation is getting closer with is positive for the Bank.

This will be a win-win deal as both companies will gain competitive advantage, realise synergies, and better their financial performance in the medium-to-long term.

The deal is accretive to growth, margins, ROA, and capital for the Bank. The stock trades at ~3x FY20E P/BV. We have positive outlook on the stock.

IndusInd Bank Ltd is currently trading at Rs1666.9, down by Rs5.35 or 0.32% from its previous closing of Rs1672.25 on the BSE. The scrip opened at Rs1656.3 and has touched a high and low of Rs1678.3 and Rs1656.3 respectively.



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