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| Bandhan to raise Rs 600 cr in FY10 |
| BS Reporter / Kolkata Apr 09, 2009, 00:28 IST |
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The West Bengal-based Bandhan, one of the largest micro-finance institutions (MFIs) in the non-banking financial company space, is planning to raise Rs 600 crore in the financial year 2009-10 by selling agricultural loans to banks.
The MFI announced On Wednesday that it had sold agricultural loans worth Rs 75 crore to IndusInd Bank. In 2008-09, it had raised Rs 300 crore through banks, according to Chandra Shekhar Ghosh, executive director, Bandhan. At present, Bandhan has an outstanding loan-portfolio of Rs 703 crore.
A statement issued by Grameen Capital said, “This transaction with IndusInd bank was structured and arranged by Grameen Capital India and comprises a pool of advances to the agricultural and allied sectors made by Bandhan-Konnagar and Bandhan Financial Services.”
Bandhan has signed a management and collection agreement with the bank, and will continue to administer the loans and channel the collections back to the bank. The deal had been factored into the balance-sheet for 2008-09, said Ghosh.
Royston Braganza, chief executive officer of Grameen Capital India, said, “The granularity of the portfolio, the income-generating nature of the loans and the intensive contact with the borrowers are key factors which contribute to the robustness of the MFI sector.” Over the last 12 months, Grameen Capital had helped MFIs raise over Rs 300 crore through similar sales of agricultural loans.
Roopa Satish, head of corporate and investment at IndusInd Bank, said, “The deal fits in well with the strategy of the bank to pursue activities and businesses which have an element of sustainability”.
On successful closure of this transaction, Bandhan and Grameen Capital plan to work together on suitably structured finance solutions, given the ambitious growth plans to accelerate financial inclusion, the statement added.
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