CDC invests Rs 330 cr tier-II capital in Janalakshmi Fin

By: | Published: January 12, 2016 12:24 AM

UK-based CDC Group has invested around Rs 330 crore of tier-II capital in domestic microfinance institution Janalakshmi Financial Services, CDC said on Monday.

UK-based CDC Group has invested around Rs 330 crore of tier-II capital in domestic microfinance institution Janalakshmi Financial Services, CDC said on Monday.

Janalakshmi Financial Services is a Bengaluru-based microlender and operates in 170 cities across 19 states. It focuses on providing small batch loans to joint lending groups, micro and small and medium enterprises and individuals with a successful credit track record under the small batch loans segment.

“This is a significant transaction that enables Janalakshmi to deepen its reach as well as provide a broader range of products and services to its customers,” Srini Nagarajan, Regional Director for South Asia at CDC, said in the statement.

Nagarajan added that with the in-principle approval from the Reserve Bank of India (RBI) to set up a small finance bank, Janalakshmi is “poised to make an even bigger social impact”.

As of September 2015, Janalakshmi had loans and advances amounting to around Rs 6,000 crore. In September last year, the RBI issued small finance bank licences to 10 domestic institutions.

Apart from Janalakshmi, CDC has made investments in two of the other institutions which were awarded these licences — Ujjivan Financial Services and Equitas Holdings. Both companies recently filed draft red herring prospectus with Securities and Exchange Board of India (SEBI) for initial public offers.

“The urban financial inclusion space is large and this large investment will facilitate our progress especially as we transition into becoming a small finance bank” Ramesh Ramanathan, founder and chairman of Janalakshmi, said.

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