We have securitised R500 crore worth farm loan with IDBI Bank and R25 crore each with Axis Bank and Development Credit Bank, said Bandhan chairman and managing director Chandra Shekhar Ghosh said. The Kolkata-based micro finance company is in the process of securitising another R100 crore loan exposure and is in talks with several lenders. We plan to securitise R650 crore farm loans. We will do another R100 crore within 15 days, Ghosh said, adding this would be the largest ever securitisation deal in the MFI sector.
As of January, Bandhan's total farm loan portfolio stood at R5,360 crore to 3.5 million customers and its capital base stood at R650 crore. The MFI sector, which has been facing fund crunch on account of lower bank financing, is seeing companies securitise their loan exposure with banks. In a securitisation arrangement, MFIs can transfer their loan and the risk attached to it to the bank that buys the loan.