Bharat Financial Inclusion, formerly known as SKS Microfinance, said it has entered into exclusive discussion with IndusInd Bank on a potential “strategic combination by way of amalgamation through a scheme of arrangement, or any other suitable structure.”
SKS Microfinance is a non-banking finance company (NBFC) was founded in 1997 by Vikram Akula, who served as its executive chair until November 2011.
The company’s mission is to provide financial services to the poor under the premise that providing financial services to poor borrowers helps to alleviate poverty.
It is considered the pioneer of the modern micro-finance industry in India.
The company had earlier said it was exploring various strategic opportunities.
“The agreement (with IndusInd Bank) primarily provides for confidentiality of information and discussion and finalisation of the terms and conditions relating to the proposed transaction with a view to entering into a definitive documentation after the necessary approvals.
“The proposed transaction would be subject to due diligence, approval of the Boards, shareholders, statutory/regulatory and other third party approvals as may be required under the applicable laws,” it added.