Private sector lender IndusInd Bank Ltd. today said it is acquiring infrastructure lender IL&FS’ brokerage business for an undisclosed sum.
The city-based lender, which has recently got the final nod for a merger with microlender Bharat Financial Inclusion Ltd., has received the Reserve Bank of India’s go-ahead for acquiring IL&FS Securities Services, it said in a statement.
“The acquisition will help us scale up the present capital market business in the bank and bring new specialised products, hitherto not offered by us, to our clients,” said Romesh Sobti, managing director and chief executive officer of IndusInd Bank.
Incorporated in 2007, the brokerage offers clearing of exchange traded derivatives, depository and custodial services and has over 1,000 broker client accounts, FPIs and FIIs, the statement said, adding that its platform sees three million transactions a day.
It had clocked revenues of Rs 324.5 crore in FY18 versus the previous fiscal's Rs 342.65 crore, and a post tax net profit of Rs 45 crore. A definitive agreement for acquisition of 100 percent ownership against cash has been signed.
IndusInd Bank said it will take up to three months to complete the acquisition. Sobti said the bank is looking forward to welcoming the company’s customers and employees into its fold.
The bank scrip gained 0.83 percent to close at Rs 1,983.45 a piece on the BSE, as against a 0.06 percent improvement in the benchmark.