Gruh Finance seeks shareholder nod on June 4 for merger with Bandhan Bank

Gruh Finance Ltd has sought shareholders' approval on June 4 for the proposed amalgamation with Bandhan Bank through a share swap deal. Gruh Finance's parent company HDFC has received RBI approval to hold 9.9 per cent in the merged entity from the earlier proposed 14.9 per cent.

HDFC holds 57 per cent in Gruh Finance at present, which has to be adjusted to make way for the 9.9 per cent stake in the merged entity, after the RBI nod, sources involved in the deal told PTI. "Pursuant to an order dated 10th day of April 2019 passed by the NCLT Ahmedabad Bench... Convened meetings to be held on 4th June, 2019," Gruh Finance said in an exchange filing.

Approval of creditors, bond holders and deposit holders of the company will also be sought on June 4, it said. The boards of both the companies had approved a "merger cooperation agreement" in January this year.

The effective date of the merger shall be January 1, 2019, subject to regulatory approvals.