Kolkata-based Bandhan Bank is set to acquire mortgage lender Gruh Finance in a share swap deal, sources privy to the developments told CNBC-TV18.

Gruh Finance shareholders will receive three Bandhan Bank shares for every five shares held in the home financier, said people familiar with the matter.

Reportedly, HDFC may hold 15.58 percent in the combined entity against 57.83 percent stake Gruh Finance. Post-merger, Bandhan’s promoter holding will come down to 60.12 percent against 82.28 percent currently.

Post-merger, FY18 earnings per share (EPS) for Bandhan Bank to decline to 10.50 from 11.30.

Last year, RBI had imposed restrictions on Bandhan Bank's branch expansion after it failed to pare promoters' stake to 40 percent from close to 82 percent, within the stipulated three-year time frame.

As per RBI shareholding norms, every bank or any firm which directly owns stake in a bank, whether it is listed or unlisted, has to reduce stake gradually to 10 percent.

First Published:Jan 7, 2019 1:38 PM IST