ESAF Small Finance Bank raises Rs 464 cr via private placement

ESAF Small Finance Bank Wednesday said it has raised Rs 464 crore through private placement of its stock to multiple investors, including PNB MetLife and Bajaj Allianz Life Insurance.

With the current fund infusion, the net worth of the bank has increased to Rs 807 crore and the CRAR (capital-to-risk weighted assets ratio) to 27.9 per cent, the bank said in a release.

Through this private placement, PNB MetLife India Insurance and ESAF Multi-State Co-operative have taken 4.99 per cent stake each in the bank, while Bajaj Allianz Life Insurance and ICICI Lombard General Insurance have picked up 4.08 per cent and 1.45 per cent stakes, respectively.

Besides, seven other investors have also taken stake in the small finance bank.

"The proceeds from the private placements will be used for general corporate purposes, capital management and to support future growth," the bank's managing director and chief executive officer, K Paul Thomas, said.

The Kerala-based bank, which started its operation in May 2016, claims to have accumulated Rs 300 crore worth of deposits and add 2.5 million customers in the first half of the current financial year.

It currently has 422 banking outlets, which include 297 ultra-small branches and 125 new retail banking outlets spread across 11 states.