Janalakshmi Fin's equity infusion pegged at Rs 4,400 cr in 5 yrs

Bengaluru-based JFSL has a strong capital base, after an equity infusion of Rs 1,000 crore in 2016

Janalakshmi Financial Services Ltd (JFSL), a large micro-finance institution (MFI) which is becoming one of the new small finance bank (SFB), will need an estimated of Rs 4,400-5,300 crore over five years to grow assets annually by at least 40 per cent, rating agency ICRA has said.

Its assets under management were just over Rs 13,300 crore at end of September 2016. This equity infusion requirement is based on the expectation of Janalakshmi maintaining a leverage of seven times. Leverage refers to the amount of debt an institution can hold on the base of capital.

Janalakshmi has seen sharp rise