Small finance bank (SFB) licensee Suryoday Micro Finance has raised R100 crore of fresh equity capital from a clutch of domestic investors, including IDFC Bank, HDFC Standard Life and a couple of other family offices, sources told FE.
While existing investor Aavishkaar Goodwell used the opportunity to completely exit the company, Lok Capital sold a part of its stake in the Navi Mumbai-based microfinance company, they said. Both the investors are learnt to have sold their stakes at a profit.
“After the current round of equity capital raising, foreign shareholding in Suryoday Microfinance has dipped below the Reserve Bank of India (RBI) mandated 49%, making it eligible for applying for a final SFB licence. We expect it to get a final approval soon and start operations by the end of the current calendar year,” one of the sources said.
In September 2015, the RBI had granted in-principle approvals to 10 entities (from 72 applicants) for setting up SFBs.
While the central bank hasn’t put any restriction on the area of their operation, it has mandated that at least 50% of an SFB’s portfolio should constitute loans and advances up to R25 lakh and that at least 75% of their exposure should be to the priority sector.
It has also mandated them to adhere to the FDI policy for private banks so far as foreign shareholding is concerned. With foreigners holding a majority stake in most of the SFB licensees, there has been a race among them to raise domestic capital to make the capital structure compliant with the RBI norms.