In March, Bandhan Bank had received a no-objection certificate from RBI for acquisition of Gruh Finance.

Kolkata-based Bandhan Bank and Ahmedabad-based Gruh Finance said on Friday that all the regulatory hurdles have been overcome for their merger, with the National Company Law Tribunal (NCLT) clearing the scheme of amalgamation.

The scheme has been approved by NCLT's Kolkata and Ahmedabad benches. October 17 has been fixed as the record date following the effectiveness of scheme for determining shareholders of the merged entity.

All processes will be completed in a month.

Bandhan Bank's merger with Gruh Finance will help the Kolkata-based private lender diversify its loan portfolio of Rs 45,400 crore, which is heavily skewed towards micro loans with 85 per cent share.

Gruh Finance -- the affordable housing finance arm of HDFC -- has a loan portfolio of Rs 17,700 crore.

Apart from the traditional area of micro-finance, affordable housing will be another major growth areas for Bandhan Bank going forward. Besides, micro small and medium enterprises (MSMEs) will also be a focus area.

In March, Bandhan Bank had received a no-objection certificate from the Reserve Bank of India (RBI) for acquisition of Gruh Finance. In January, Gruh Finance was taken over by Bandhan Bank in a share-swap deal.