INDUSIND BANK TO BUY MICROLENDER BHARAT FINANCIAL INCLUSION LTD.

India’s IndusInd Bank Ltd agreed an all-share deal on Saturday to buy microlender Bharat Financial Inclusion Ltd for close to 155 billion rupees ($2.4 billion), boosting its presence in microfinance lending and rural banking.

IndusInd will give Bharat Financial’s shareholders 639 of its shares for every 1,000 shares they own in the microfinance lender, both companies  said in a joint statement.

The merger, which will add 6.8 million customers to Indusind’s 10 million now, and which comes amid a slew of similar announcements involving the urban-focused new age private sector lenders such as Kotak Bank and IDFC Bank, will also help reduce cost of lending for micro borrowers as cheaper deposits can be used to fund their credit needs.