Indian lender Bandhan Bank completed the acquisition of Gruh Finance, the home loan subsidiary of HDFC Bank.

The transaction was closed following the approvals from respective National Company Law Tribunal benches.

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In a stock exchange filing, Bandhan Bank said that it will issue 568 fully paid-up equity shares of INR10 for every 1,000 fully paid-up equity shares of INR2 each to Gruh shareholders.

Bandhan Bank agreed to acquire the home loan unit of HDFC Bank in January this year. Subsequently, the deal received RBI nod in March.

Further, HDFC divested a 6.1% stake in Gruh Finance through stock exchanges in May to comply with RBI regulations in order to facilitate Gruh Finance merger with Bandhan Bank.

The Gruh Finance acquisition received Bandhan Bank shareholder green light in July.

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As a subsidiary of HDFC, Gruh Finance commenced operations in January 1988. Currently, it has 195 branches across 11 states of India.

According to media sources, the housing finance unit boasts a loan portfolio of more than INR175bn ($2.46bn).

The acquisition was aligned with Bandhan Bank’s strategy to reduce promoter stake in the company. The deal will also enable the lender to diversify its loan portfolio, besides its conventional strongholds of micro-financing.