On a first of its kind of move, IDFC Bank Ltd is going to acquire a Tamil Nadu based microfinance institution (MFI) called Grama Vidiyal, A small unit financing scheme in rural villages of Tamil Nadu.
- This Acquisition offers the bank access to 1.2 million households apart from adding 319 points of presence in seven states — Tamil Nadu, Kerala, Karnataka, Puducherry, Maharashtra, Gujarat and Madhya Pradesh.
- The acquisition sum has not been exposed to the public yet. Hereafter, 30 years old Trichy based Grama vidiyal group will act as a Wholly Owned subsidiary of IDFC bank.
- As per this acquisition the micro-finance unit is going to transfer its 3000 employees and micro finance assets worth 1502 crores to the IDFC bank.
- IDFC Bank has started its focus on rural banking along with corporate banking right from the start and IDFC Bank’s acquisition of a micro-finance company comes at a time when growth in the sector has spiked.
- It is noted that Grama Vidiyal Microfinance Limited, a Non-banking Finance Company (NBFC), is one of the largest microfinance institutions in the country. As a part of the 30 year old conglomerate of grassroots institutions, it is known for its double-bottom-line approach focusing on the sustainability of financial inclusion programs and the development of women and their families.
- It is established to empower women of the poorest families socially, economically and politically through networking them into community institutions and through efficient poverty alleviation and microfinance program.
♦ Name – Infrastructure Development Finance Company, Headquarters – Chennai, India
♦ CEO – Vikram Limaye
♦ Establishment – 1997
♦ IDFC Bank Headquarters – Mumbai
♦ IDFC Bank CEO – Rajiv B Lall
IDFC Bank started banking operations on 1 October 2015, converting from an infrastructure focused lender into a universal bank. IDFC was one of two entities that got a banking license from the RBI in 2014 along with Bandhan Bank