CDC commits $50m to India's RBL Bank

The investment will be made in the form of tier two debt capital, according to a disclosure. RBL will use the commitment to strengthen its capital base, support agribusiness financing, financial inclusion and small and medium-sized enterprise (SME) lending, and expand into new regions of India.

CDC is an existing investor in RBL; it committed INR1.7 billion in 2014, and invested INR445 million in the bank's pre-IPO round last year. Other investors have included Norwest Venture Partners, Samara Capital, Baer Capital Partners, Gaja Capital, Capvent, IDFC Alternatives and the International Finance Corporation.

"Though the debt market in the Indian financial sector is well developed, the market for tier-two capital is weak. Our support will enable RBL Bank to reach more customers, provide more jobs, and boost the level of financing available to SMEs and agribusiness in the country," said CDC Managing Director Holger Rothenbusch.

RBL was founded in 1943 as Ratnakar Bank, and offers comprehensive banking services for businesses and consumers across India. It operates 201 branches and 373 ATMs across 16 states in India, and claims more than two million customers. In its most recent annual report, the company recorded revenue of INR32 billion for the year ended March 2016, up from INR23.6 billion the year before; profit rose from INR2.1 billion to INR3 billion over the same period.

The bank launched its IPO last year, raising INR12 billion. Baer, which had invested in 2011 through its Beacon India fund, exited its entire stake at that time, while Gaja and Capvent made partial exits.

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• Topics
• South Asia
• Financials
• Expansion
• Financing
• India
• CDC Group
• Financial Services