RBL Bank rises 1% on raising stake in microlender Swadhaar Finserve to 100%
RBL Bank share price gained more than 1 percent intraday Monday after the private sector lender has taken full control of microfinance institution.
The bank has increased its stake in microlender Swadhaar Finserve to 60.48 percent for an undisclosed sum and now possess rights to up it to 100 percent.
RBL’s managing director and chief executive Vishwavir Ahuja said Swadhaar is now a subsidiary for the bank and increasing the stake is in line with its vision and strategy.
“The bank sees Swadhaar as a vehicle to execute its strategy to become a significant player in the financial inclusion and micro banking segment,” he said, adding its micro advances book stands at around Rs 4,600 crore serving 1.9 million borrowers.
Swadhaar alone has helped the bank create assets under management of around Rs 1,000 crore as of September 2017, he said.
In September last year, RBL Bank had acquired 30 percent of Swadhaar, which now operates as the bank’s business correspondent in 17 states and Union Territories through 242 branches.
The transaction comes amid similar ones by rivals Indusind Bank, Kotak Mahindra Bank and IDFC Bank to acquire microlenders to deepen reach and help meet the mandated priority sector loans.
Meanwhile, Norwest Venture Partners X FII – Mauritius sold 56,31,212 equity shares of the bank at Rs 510 per share through a block deal on last Friday.
At 14:20 hours IST, the stock price was quoting at Rs 514.50, up Rs 2.45, or 0.48 percent on the BSE.
(With inputs from PTI)