The document is an investor presentation announcing the merger of Bharat Financial Inclusion Limited (BFIL) and IndusInd Bank (IBL). The key points are:
1) BFIL will merge into IBL through a share swap. BFIL shareholders will receive 639 shares of IBL for every 1,000 shares of BFIL, representing a 12.6% premium.
2) BFIL's microfinance operations will be transferred to a wholly owned subsidiary of IBL, which will act as a business correspondent.
3) The merger creates a large combined network of over 3,600 branches and outlets, and addresses the financial inclusion gap through the complementary strengths of both companies. Estimated
Summer internship report submitted to State Bank of India on the topic - “Yo...Deepanjan Das
A Summer internship report submitted to State Bank of India on the topic - “Youth and SBI - Connected or Disconnected”.
Research work done from May 15th 2013 to July 15th 2013.
60 days/ 2 months internship program.
Summer internship report submitted to State Bank of India on the topic - “Yo...Deepanjan Das
A Summer internship report submitted to State Bank of India on the topic - “Youth and SBI - Connected or Disconnected”.
Research work done from May 15th 2013 to July 15th 2013.
60 days/ 2 months internship program.
summer internship report on digital banking (Punjab & Sind Bank)sharda university
i had completed my 2 month summer internship report from punjab and sind bank on digital banking and digital services provided by the bank to the customers time duration is 20 june 2018 to 20 august 2018
Competitive Research and Analysis of Kotak Mahindra BankSumeet Nabajja
Visit my first group project. The project is about competitive research and analysis of Kotak Mahindra Bank along with it’s two major competitors HDFC Bank and Axis Bank.
The presentation speaks about:-
Background of each brand
SEO analysis
SEM analysis
Social Media Presence
Content publishing
Observation & Suggestions
summer internship report on digital banking (Punjab & Sind Bank)sharda university
i had completed my 2 month summer internship report from punjab and sind bank on digital banking and digital services provided by the bank to the customers time duration is 20 june 2018 to 20 august 2018
Competitive Research and Analysis of Kotak Mahindra BankSumeet Nabajja
Visit my first group project. The project is about competitive research and analysis of Kotak Mahindra Bank along with it’s two major competitors HDFC Bank and Axis Bank.
The presentation speaks about:-
Background of each brand
SEO analysis
SEM analysis
Social Media Presence
Content publishing
Observation & Suggestions
#ChoiceBroking - State Bank of India (SBI), founded in 1806, is the oldest and largest commercial bank in India engaged in providing a range of banking and financial services.
Fundamental report of oriental bank of commerce by epic researchAditi Gupta
Oriental Bank of Commerce (OBC) is one of the oldest and most trusted public sector bank. It
operates through 4,917 branches across the country reaching every geographical location.
During the FY6, the Paid–up capital of the bank increased by Rs.21.55 crore.
Bandhan started as Bandhan Konnagar in 2001 as a non-governmental organisation
(NGO) providing microfinance services to socially and economically disadvantaged
women in rural West Bengal. Bandhan Financial Services (BFSL) started its microfinance
business in 2006. The NGO transferred its microfinance business to BFSL in 2009. Thus,
the entire microfinance business was undertaken by BFSL from 2009.
RBL Bank is one of the fast growing private banks in India. A detailed general environment analysis(PESTEL), Industry analysis(Porter's 5 forces), VRIO analysis carried to look at the strategy analysis and formulated strategy for different business verticals, as part of the Project in MBA
Banking sector is going to be the most watched sector in the coming quarters. There are reasons for this, RBI has reduced the CRR rate and repo rates. The debt/GDP ratio of the Government is scary at 80% essentially meaning that the Government cannot borrow much without jeopardizing stability of banking sector. Given project is an attempt to identify and analyse the vision and mission of HDFC bank, as well as comparing the position and strategies of the bank with its major competitor.
Project:
Provides all the crucial information on HDFC Bank Limited required for business and competitor intelligence needs.
Contains a study of the major internal and external factors affecting HDFC Bank Limited in the form of a SWOT analysis as well as a breakdown and examination of strategies of HDFC Bank Limited.
Major factors contributing the success of HDFC.
Industrial analysis of HDFC through Porter’s five forces model as well as comparing that with its competitor ICICI.
Analysis done on BCG matrix
With this project we have tried to understand the different business process identified by the bank, as well as analyzing its strength and weakness as compared to other banks. Our project is mainly concentrated on the comparative analysis of HDFC and competitor ICICI. The source of information is secondary that is through internet and different newspapers and sites of HDFC and ICICI as well as some of the journals.
1. October 14, 2017
The General Manager
Department of Corporate Services - Listing Department
BSE Limited
Phiroze Jeejeebhoy Towers
Dalal Street
Mumbai 400 001
The Vice President, Listing Department
National Stock Exchange of India Limited
Exchange Plaza
Bandra Kurla Complex
Bandra (East)
Mumbai 400 051
Dear Sirs,
Investor Presentation – Merger of Bharat Financial Inclusion Limited and IndusInd Bank
This has reference to our letter dated October 14, 2017 enclosing therewith a copy each of the
Press Release and Investor Presentation on the captioned subject.
We are enclosing herewith a copy of revised Investor Presentation. You are requested to kindly
take the aforesaid on your record for the information of all stakeholders.
Thanking you,
Yours faithfully,
For Bharat Financial Inclusion Limited
(Formerly known as ‘SKS Microfinance Limited’)
Rajendra Patil
Executive Vice President – Legal & Company Secretary
2. IndusInd Bank and Bharat Financial Inclusion Merger
Building Sustainable Platform for Financing Livelihoods
October 14, 2017
5. Transaction Structure
Issue of shares by
IBL to shareholders
of BFIL
BFIL
Shareholders
BFILIBL 1
Wholly Owned
Subsidiary
3
Subsidarisation of BC
Operations
2
Merger of BFIL
into IBL
1. BFIL to merge into IBL under a Scheme of
Arrangement
2. BFIL shareholders to receive IBL shares as
consideration
3. IBL to transfer the employees and operations
into a wholly owned subsidiary* making it a
captive Business Correspondent
* Subsidiary to be incorporated post RBI approval
6. Transaction Structure
Swap Ratio
• BFIL shareholders to receive 639 IBL shares for every 1,000 BFIL shares
• This implies a premium of 12.6% to BFIL’s 2 week VWAP
Board
• No change in the Board of IndusInd Bank
• MFI Advisory Committee to be set up for the Wholly Owned Subsidiary
Employees Continuity of all BFIL Management and Employees in current assignments
Resultant Structure
• BFIL assets and liabilities to merge into IBL’s assets and liabilities.
• BFIL operations to be part of Wholly Owned Subsidiary of IBL.
• Subsidiary to act as a Business Correspondent of IBL
8. Culmination of Existing Long Standing Relationship
7
Compatible
Culture
Business Correspondent
for Over 5 years
99 BFIL Branches
Exclusive to IBL
Rs 1,100 cr Limits;
Rs 595 cr BC Outstanding
Savings & Recurring
Accounts for Borrowers
Partnership for 2-
Wheeler & Home
Improvement Loans
Integrated CRM Platform
Merger of Entities Focusing on “Livelihood Financing”
Rural Distribution
Service Points
9. Creates Large and Complementary Network
8
Jammu and
Kashmir
Rajasthan Uttar Pradesh
Bihar
Sikkim
Assam
Arunachal Pradesh
Nagaland
Manipur
Mizoram
Tripura
West Bengal
Jharkhand
Odisha
Chhattisgarh
Madhya Pradesh
Maharashtra
Karnataka
Goa
Andhra Pradesh
Tamilnadu
Gujarat
Punjab
Himachal
Pradesh
Uttarakhand
Telangana
4
4
41
2
1
9
1
66
3
2
1
2
3
1
282
106
6
147
30
67
96
73
143
34
33
34
19
51
23
29
35
35
Kerala
Haryana
Chandigarh
13
Meghalaya
Daman and Diu
D and NH
Pondicherry
95
31
43
9
17
11
51
48
26
123
62
75
58
55
147
65
34
33
Total North
East
16
18
12
New Delhi
2
95
94 102
159
1
135
84
38
54
130
163
176
75
58
58
BFIL Presence: 1,408 strong MFI Network
CFD Presence: 999 Outlets (excluding Dealer Points)
IBL Presence : 1,210 Branches (includes 250 rural branches)
Merged Entity to have 3,600+ branches and outlets
Geographic Reach as of 30th June 2017
10. BFIL Provides Large CASA & Deposit Opportunity
9
Savings Bank Accounts
Strong Liability Franchise
Fixed Deposits
Recurring Deposits
Current Accounts
Stronger CASA Base resulting
in lower cost of funding
6.8 Million Members
spread across ~100,000
villages
11. IBL & BFIL together bridging the Financial Inclusion gap
10
Basic Banking
Services
Microfinance, Microinsurance, Savings Bank
Accounts., Recurring Deposits
Additional Services
(Ease of Use)
Mobile Banking, Micro ATMs, Debit Card,
Value added services like Rural Insurance
Loans with Longer
Tenure & Larger
Ticket Size
Home Improvement Loans, 2 Wheeler,
Personal, Secured Asset Creation
Tech. Products
E-Commerce Payments, Retail Distribution,
Cost Optimization
1
2
3
4
IBL’s Banking
Capabilities
BFIL’s Large Presence
in Under Banked Areas
Across Country
Answer the Rural
Banking Need
IncreasingSophisticationofFinancialProducts
꞊
IntegratedCRMTechnologyPlatform
No Mission Drift: Committed to the Cause / Enhancement of Microfinancing
12. Key Synergy Estimates
11
Lower Cost of Funds Reduction of 3%
Priority Sector Loans
100% Eligible as PSL
Fee income of 1%-1.5% on excess
Capital Release 75% Risk Weight in Bank
Liabilities Potential to penetrate >50% Customer Base
Ancillary Products
2-Wheeler Financing
Home Improvement Loans
Fixed Usage Loans
Micro Insurance
Note: Synergies are management estimates and subject to transaction receiving all approvals
13. Creating Domain Expertise in Microfinance
12
Furthering PC 4 Strategic Theme of “Rural Banking and Microfinance”
Creates “Scale with Profitability” - Faster growth and
higher profitability vs IBL
Provides access to best-in-class microfinance
capabilities
Huge increase in outreach with ~1,400 well-spread
MFI outlets with 6.8 Mn borrowers
Ability to leverage network, clients and capital
Transaction is key driver of “Bharat” Play (currently
serving ~100,000 villages)
Portfolio eligible for Priority Sector Loans
Becomes a “Bank” overnight and provides ready
platform to drive operating synergy
Universal product suite for customers
Reduces risks and improves competitiveness vis-à-vis
recently licensed SFBs
Continuation of the business without merger
interruption through a “lift and drop” approach
Diversification for all stakeholders
Access to stable and low-cost of funds at a bank
Transaction Accretive to All Key Vectors on Day 1 !
For IBL For BIFL
17. Process and Indicative Timelines
Board Approval
Regulatory Filings
& Approvals
NCLT Filings &
Approval
ROC Filings &
Share Issuance
Valuation / Swap Ratio
Approval of ‘Scheme’, matters
therein and other legal
documents
RBI
CCI
SEBI and Stock Exchanges (NOC)
Filing of Scheme
NCLT approval: Shareholders
approval, Creditors approval,
other approvals
ROC Filing
Allotment of shares to BFIL
shareholders
2-3 months 4-6 months 1 month
Date of Announcement
14th Oct’ 2017
Transaction to take up to 6-9 months for closure
19. The proposed transaction is subject to approval of various regulatory and other authorities, including without limitation, the Reserve Bank of India, Competition Commission of
India, Securities and Exchange Board of India (Stock Exchanges), and the National Company Law Tribunal as well as the shareholders and credits of BFIL and IndusInd Bank.
Estimates, expectations, and business plans in this press release are forward-looking statements based on currently available information and the management’s current views and
assumptions. Such statements are naturally subject to risks and uncertainties. In addition to statements which are forward-looking by reason of context, the words "will", "expects",
"plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Factors such as changes in
applicable laws and regulations, including in regard to the life insurance sector, the development of general economic conditions, future market conditions, unusual catastrophic loss
events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. IndusInd
Bank Limited and Bharat Financial Inclusion Limited (“Parties”) do not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status
of the statements contained in this release. Therefore, in no case whatsoever will the Parties be liable to anyone for any decision made or action taken in conjunction with the
information and/or statements in this press release or for any related damages.
The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and
observe, any such restrictions.
Figures for the previous period/ year have been regrouped wherever necessary to conform to current period’s / year’s presentation. Totals in some columns/ rows may not agree due
to rounding off.
Disclaimer