Bandhan is gearing up for a bigger play in the financial services sector having expanded from micro lending to banking, followed by a foray into housing finance with the acquisition of Gruh and the current proposal to acquire the mutual fund business of IDFC.

Bandhan plans to expand its presence in the insurance segment. The diversification, however, will be primarily through Bandhan Financial Holdings (BHFL), the holding company of Bandhan Bank.

BFHL may enter the insurance space in the next two years and will look at both organic and inorganic options.

BHFL is also among the prospective resolution applicants for Reliance Capital where the insolvency resolution process is in process.

“Bandhan already has a significant presence in terms of its reach in the country and part of the progression is to add to the services that can be provided to its large customer base. Mutual fund assets have grown significantly in the last 10 years and a foray into the business fits well with the overall portfolio of Bandhan’s services,” said BFHL managing director Karni S. Arha.

BFHL, GIC and ChrysCapital together on Thursday said they have entered into a definitive agreement to acquire IDFC Asset Management Company Limited and IDFC AMC Trustee Company Limited from IDFC Limited for Rs 4,500 crore.

After acquiring IDFC AMC, the consortium will try to strengthen its product portfolio by introducing more equity-oriented funds.

IDFC MF has been largely debt-oriented with around 75 per cent of its assets under management under debt funds.

The acquisition is expected to be completed in the next 9-12 months after getting all the regulatory approvals.

“The immediate focus after acquisition will be to scale up the business.”

“IDFC has more debt-based funds; we will look at adding more equity-based funds. We will also look to strengthen the distribution footprint by tying up with banks and SFBs,” said Arha.

Bandhan Bank scrips at Rs 315.55 were up 0.16 per cent on Thursday on the Bombay Stock Exchange.