Grameen Capital India Ltd (GCI), formed by Grameen Foundation (GF) in collaboration with IFMR Trust and Citi Bank?s NBFC arm, Citicorp Finance India, was launched in Mumbai on Monday. It was formed with the idea of enabling microfinance institutions (MFIs) to develop and widen access to the capital markets, primarily the domestic capital market. Briefing the media on the launch, Sanjay Nayar, CEO, Citi India, said that GCI will enable breaking through the capital constraint barrier that has prevented the sector from growing as quickly as it is otherwise capable of. Right now Citi Bank is holding a stake of 14% in GCI, the balance being owned by IFMR and Grameen Foundation with share of 43% each.
To begin with, GCI has tied up with MFIs like Grameen Koota in Bangalore, SKS Finance in Hyderabad and Cashpor in Varanasi, said Alex Counts, president, Grameen Foundation.
