Suryoday Small Finance Bank raises Rs 62 crore from 6 investors

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Published: May 28, 2020 5:30 AM

Suryoday Small Finance Bank had earlier launched a working capital loan product for its microfinance institutions (MFI) customers to meet their urgent liquidity requirements during Covid-19 lockdown.

Under the scheme, customers can avail the working capital loan of Rs 5,000 at one go or in tranches, depending on their requirements. Under the scheme, customers can avail the working capital loan of Rs 5,000 at one go or in tranches, depending on their requirements.

Suryoday Small Finance Bank (SSFB) has raised Rs 62.14 crore from 6 existing investors, through private placement. The six investors in the bank includes Gaja Capital, Kotak Life, Lok Capital, TIAA and Kiran Vyapar.

The lender is going to use the capital for growth. R. Baskar Babu, managing director (MD) and chief executive officer (CEO) of Suryoday Small Finance Bank said that growth capital has come at a time when the bank started re-engineering business processes. The bank is in the process of digitising microfinance vertical, he further added.

Suryoday Small Finance Bank had earlier launched a working capital loan product for its microfinance institutions (MFI) customers to meet their urgent liquidity requirements during Covid-19 lockdown. Under the scheme, customers can avail the working capital loan of Rs 5,000 at one go or in tranches, depending on their requirements. The product was crafted in such a way, that customers will pay interest only when he uses the money. The company is also exploring to increase the limit of working capital as per experience with customers. The bank has disbursed working capital loan under new product to around 400 accounts till now.

The bank has a deposit base of more than 2,800 crore and a gross loan portfolio of around Rs 3,700 crore.

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