Making way into becoming a small finance bank, CDC, a microfinance institution of UK-based development finance entity, has invested $50 million (Rs 330 crore) in Janalakshmi Financial Services Ltd, a microfinance institution, informed a senior official.
MFI was poised to make an even bigger social impact with an in-principle approval from the Reserve Bank of India (RBI) to set up a small finance bank, said Srini Nagarajan, CDC Regional Director (South Asia), in a statement.
The urban financial inclusion space was large. This investment would facilitate the MFI’s progress as it transitions into becoming a small finance bank, Ramesh Ramanathan, chairman and founder of Janalakshmi, said.
Bengaluru based-Janalakshmi is a pan-India institution represented in over 170 cities across 19 states and has loans and advances outstanding of $900 million (Rs 6,000 crore).
In September 2015, Janalakshmi, along with nine other MFIs, received an in-principle approval from RBI to set up a small finance bank. It offered potential for Janalakshmi to broaden the scope of its operations and deliver financial inclusion more holistically to its customers.
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