The Indian Wire » Startups » Ujjivan Small Finance Bank could get ₹350 crore from IFC

Ujjivan Small Finance Bank could get ₹350 crore from IFC

International Finance Corporation (IFC), the investment arm of the World Bank Group, is looking to invest around ₹350 crore ($50 million), as debt capital to Ujjivan Small Finance Bank, as reported by VCCircle.

If the investment comes through, it will enable the lender to expand outreach to low-income borrowers, while strengthening its balance sheet.

IFC is looking to offer capital via subordinated debt or junior debt. According to the report, the loan proposal is expected to put in front of the IFC’s board, next year on 28 February.

Bengaluru-based Ujjivan Small Finance Bank, a wholly-owned subsidiary of Ujjivan Financial Services, was given the nod by RBI to operate as small finance bank in November 2016. It started operations in February 2017.

The small finance bank aims to provide financial services to the unserved and the underserved customers of India. The loan from IFC will help the finance bank to extend finance to microfinance, small, and micro enterprises.

Ujjivan Small Finance Bank has 462 branches, 187 asset centres, and 275 banking outlets.

The small finance bank’s total loan book stood at ₹7,787 crore, while total loan disbursements stood at ₹2,092 crore, as of June.

Apart from providing debt funding, IFC has also made a number of equity investments in India, across various domains. Some of its notable investments include Lenskart, BigBasket, NephroPlus, BlackBuck, Portea Medical, and Byju’s among many others.

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