Private sector lender IndusInd Bank Tuesday said it will buy IL&FS Securities Services Ltd (ISSL), a subsidiary of Infrastructure Leasing and Financial Services (IL&FS) Ltd, for an undisclosed amount.
One of India’s Leading Private sector bank IndusInd Bank declared that it has acquired IL&FS’ brokerage business – IL&FS Securities Services Limited (ISSL).
In any case, IndusInd Bank declined to uncover the budgetary subtle elements of the arrangement. Reports assert that the obtaining is an all-cash deal and conclusive agreement has been signed that gives IndusInd Bank 100% ownership of the newly acquired entity.
Reserve Bank of India has effectively given nod for the acquisition , however the obtaining still anticipates other administrative endorsements. The obtaining procedure will allegedly take almost three months to finish.
“This acquisition brings scale to this business, complements our current product offerings and fits nicely into our strategy of creating differentiated businesses with domain expertise,” Romesh Sobti, MD & CEO, IndusInd Bank was quoted in the bank statement.
“The securing will enable us to scale up the present capital market business in the bank and bring new particular products, up to this point not offered by us, to our customers,” said Romesh Sobti, MD and CEO of IndusInd Bank.
Established in 2006, ISSL performs various critical functions to facilitate capital market operations. This mainly includes functions like professional clearing, depository, and custodial services. It serves both retail as well as institutional clients. A statement issued by the company claims that it boasts over 1,000 brokers and records three million transactions a day.
In the financial year ended March 2016, IL&FS Securities Services had a total revenue of Rs277.6 crore and a profit after tax worth Rs39 crore.
IndusInd Bank’s obtaining comes in the midst of saving money segment’s expanding NPA issue, which has taken a tremendous toll on banking sctor. In spite of the fact that this securing may not help in changing speculator’s state of mind but rather it will positively convey some relief to banking stocks.