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IFC plans to invest around $50 million in Ujjivan Small Finance Bank

Ujjivan would use the funds for on-lending to MSMEs, SMEs and women-owned enterprises

T E Narasimhan  |  Chennai 

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International Corporation (IFC), a member of the World Bank Group, is planning to put around $50 million (around Rs 3.5 billion) in the form of a sub-investment in Bank. The would use these funds for on-lending to micro small and medium enterprises (MSMEs), and

The investment is said to help expand access to for borrowers with little or no access to formal sources of financing, such as those in India’s low-income states with some of the highest population densities and poverty rates, according to

said its investment would help demonstrate the sustainability of lending to micro and small business enterprises and build investor confidence in alternative means of through various channels.

The proposed investment aims to provide long-tenor diversified funding support as institutions transform from non-banking financial companies (NBFCs) to small banks.

With its global experience of working with microfinanciers, besides micro and small business entities, is uniquely positioned to help these institutions become key financial service providers in the lower MSME segment.

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First Published: Wed, November 07 2018. 07:53 IST
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