Mumbai: Private sector lender IndusInd Bank on Tuesday announced it was acquiring 100 per cent of IL&FS Securities Services Ltd (ISSL) for an undisclosed sum.

ISSL, incorporated in 2006-07, is a capital market intermediary offering the clearing of exchange traded derivatives, depository and custodial services. It has over 1,000 broker client accounts. It also has an integrated product suite across the capital markets value chain, including clearing, custody, depository and fund accounting.

In a late evening statement, IndusInd Bank said it has signed a definitive share purchase agreement with Infrastructure Leasing and Financial Services Ltd (IL&FS) and other minority shareholders to acquire 100 per cent of ISSL. It added that the Reserve Bank of India (RBI) has granted approval for the proposed transaction. The all-cash acquisition is expected to be completed in a period of three months. ISSL posted a standalone turnover of Rs 325 crore in 2017-18 against Rs 343 crore in the preceding year.

"Over the years, ISSL has established itself as market leader with a dominant market share in professional clearing business of exchange traded derivatives. Its robust technology and operations platform clears over three million transactions every day on the stock exchanges. This acquisition aligns well with our strategy of focussing on differentiated businesses with strong domain leadership,'' Romesh Sobti, MD & CEO, IndusInd Bank said.

IndusInd Bank had recently got the final nod for a merger with micro lender BFIL. Ahead of the announcement, shares of IndusInd Bank finished with marginal gains. At the BSE, the scrip settled at Rs 1983.45-a gain of 0.83 per cent.