Bandhan Bank to buy mortgage provider Gruh Finance in share-swap deal

Bandhan Bank Ltd will buy mortgage provider Gruh Finance Ltd in a share-swap deal to build up its housing loan portfolio, the companies said on Monday.

Under the merger cooperation agreement, shareholders of Gruh Finance will get 568 shares of Bandhan Bank for every 1,000 shares held.

The amalgamation will result in enhancement of shareholders' value accruing from synergy of operations, new products development, integration of technology and information, both the companies said in regulatory filings to stock exchanges.

It will help in pooling of resources, creating better synergies, optimal utilisation of resources and greater economies of scale, the filings said.

Bhandhan Bank has