PE investors commit $54m to Ratnakar Bank – report

The other investors are GPE India, Argonaut Ventures , UTI Invest Advisory and Gaja Capital Partners. According to The Economic Times, Ratnakar will use the funds to grow loans in a country where the demand for credit still remains strong at about 17%.

This is the second round of funding for the Maharashtra-based bank since former Bank of America executive Vishwavir Ahuja took over as CEO and managing director in 2010. That same year the bank raised INR7.2 billion by selling shares to Faering, Gaja and Norwest.

Although Ratnakar is a traditional bank, its nationwide network of 108 branches could prove attractive to the new lenders that are likely to be established under guidelines to be issued next month by the Reserve Bank of India. Under the guidlines, businesses with a successful track record and a minimum capital of INR5 billion will be allowed to set up commercial banks.

Ratnakar's net profit rose to INR653 million in the financial year ended March 2012, compared to INR125 million in the previous year.

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• Topics
• Financials
• South Asia
• India
• Financial Services
• Norwest Venture Partners
• Aditya Birla Capital Advisors
• Gaja Capital Partners