IDFC Bank, which started banking operations only in October last year, will be acquiring Grama Vidiyal, a Tiruchi-headquartered microfinance institute, in an all cash deal.
The value of the transaction, however, was not disclosed.
Rajiv Lall, CEO & MD of IDFC Bank, said Grama has a loan book of Rs 1500 crore and the assets will be merged with the bank's book.
However, the MFI will also be a subsidiary of the bank for the business correspondent operations .
"The acquisition of a microfinance institution by a bank is an industry first," said Mr. Lall.
