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Mumbai, Aug. 20 IndusInd Bank has entered into a securitisation deal in microfinance worth Rs 150 crore with SKS Microfinance. The first tranche of the Rs 100-crore transactions was closed on July 29 with the second tranche expected to conclude in February next, a press release from the bank said.

The deal was structured and arranged by Grameen Capital India and comprised a pool of advances to the agriculture and allied sectors.

Under this transaction, SKS Microfinance offered a pool of assets to IndusInd Bank. The credit enhancement was provided through an over-collateralisation structure of SKS’ micro finance assets. SKS Microfinance has also signed a management and collection agreement with the bank and would continue to administer these loans and channel the collections to the bank, the release said.

Mr Suhail Chander, Head Corporate & Investment Banking, IndusInd Bank, sees this deal as an opportunity for the bank to build up its agri portfolio and get involved in the micro finance field.

According to Mr Dilliraj S., Chief Financial Officer, SKS Microfinance, the deal will help SKS to get access to low cost money in July itself as generally the assignment of agri portfolio occurs only in the fourth quarter.

More Stories on : Securitisation | Rural Development | Private Banks

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