These funds would be utilised in opening up 600 branches across 27 states of the country.
By Aparajita Choudhury
Singapore-based GIC is investing Rs 1,020 crore in microfinance institution Bandhan Financial Services. The deal is likely to be closed by February 2015, said Chandra Shekha Ghosh, Chairman, Bandhan Financial Service.
When asked about the stake GIC would hold in the institution, Ghosh denied commenting on that. "These funds would be utilised in opening up 600 branches across 27 states of the country," Ghosh told Entrepreneur India.
GIC is the world's largest global investors, with well over $100 billion of assets in more than 40 countries worldwide. Its portfolio spans across six core asset classes with over $100 billion of assets in 40 countries. It has its global presence across 10 countries and a skilled and experienced team of over 1,200 people.
As per the Reuters report, the company will get a total equity investment of Rs 16 billion, including Rs 5.8 billion from existing investor IFC.
"We will also use these funds to strengthen our IT infrastructure, Software infrastructure and HR department," said Ghosh.
Bandhan was set up in 2001 to address the dual objective of poverty alleviation and women empowerment. The company was registered as a Non Banking Financial Company (NBFC) with the Reserve Bank of India (RBI). Bandhan and IDFC were the only two companies which won bank permits from the RBI last year in what was the first bank licensing process in a decade. At present, Bandhan has 2,022 branches across the country and has disbursed loans of about Rs 1,717 crore till now.