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IFC plans to invest around $20 mn in Suryoday Small Finance Bank

World Bank's investment arm said that the proposed investment would demonstrate IFC's continued support to its financial inclusion partners

T E Narasimhan  |  Chennai 

IFC Investment
Illustration: Binay Sinha

Corporation (IFC) is planning to invest up to $20 million (around Rs 1,400 million equivalents) in Bank. The proceeds will be used to support Borrowers.

The investment will be in the form of sub-debt investment. IFC’s proposed investment will help the company to expand the outreach of access to low-income borrowers who have little or no access to formal sources of financing and strengthening its balance sheet through the availability of long tenor debt.

World Bank's investment arm said that the proposed investment would demonstrate IFC's continued support to its financial inclusion partners, which have been impacted post demonetisation. The investment aims to provide long tenor and diversified funding support to the institutions which are facing increased delinquencies and provision requirements.

IFC, through its global experience with MFIs, micro-small business financing entities is uniquely positioned to help these institutions become a key financial services provider in the lower MSME segment, said

The investment will help in expanding the outreach of access to to borrowers who have little or no access to formal sources of financing, including borrowers in low income states of India which have amongst the highest population densities and poverty rates in the country.

Suryoday was founded by Baskar Babu. Other shareholders include specialised funds such as Lok Capital Group, other domestic and foreign private equity funds and HNI investors, in addition to the HDFC Group through HDFC Holdings Limited and HDFC Standard Life Insurance.

Suryoday operates through 241 branches in 7 states and 1 union territory. Company's borrower base is more than 850,000 and loan portfolio is around Rs 19.4 billion as of June 2018.

First Published: Tue, November 27 2018. 10:40 IST
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