Bandhan Financial Services on Monday said Singapore’s sovereign wealth fund GIC will pick up fresh stake in the company by investing about...
Bandhan Financial Services on Monday said Singapore’s sovereign wealth fund GIC will pick up fresh stake in the company by investing about Rs 1,000 crore. The microfinance major secured an ‘in-principle’ approval from the RBI for a banking licence in April last year. The proposed Bandhan Bank is expected to commence operations by September.
“We have received a commitment from GIC that it would invest about Rs 1,000 crore. This is the largest amount of investment in an MFI in the recent times,” Chandra Shekhar Ghosh, chairman & managing director of Bandhan, told FE.
International Finance Corporation (IFC) , which already holds close to 11% equity in the Kolkata-based MFI, is also increasing its stake in Bandhan by Rs 580 crore. IFC is a member of the World Bank Group.
“With the new investment, we are ready to soon launch a well-capitalised, robust universal bank that can focus on building assets and managing risks competently,” said Ghosh.
After the Rs1,600-crore fresh equity investment by GIC and IFC, Bandhan will have a capital base of approximately Rs 3,200 crore, against
RBI’s stipulated capital requirement of Rs 500 crore to set up a new bank. Bandhan’s current capital base is around Rs 1,500 crore with a 21% capital-adequacy ratio. The proposed bank will operate about 600 branches across India, with 10 million depositors and a loan book of close to Rs 8,000 crore.