The Hindu Business Line : Grameen Capital launches operations in Mumbai

Mumbai, Jan. 14 Grameen Capital India Ltd calls itself the ‘investment banker’ for the poor much like the Nobel Laureate, Dr Muhammad Yunus, called himself the banker of the poor.

The company, which launched its operations in Mumbai on Monday, is a joint venture in which Grameen Foundation, US and IFMR Trust hold 43 per cent stake each and Citicorp Finance India 14 per cent. The initial capital would be Rs 5 crore.

Grameen Bank India will help micro finance institutions (MFI) gain wider access to domestic capital markets through securitisation and syndication of micro-finance loans, proactive engagement with rating agencies, and capital advisory services to MFIs for raising low-cost on-lending funds. It will offer IPO advisory and management services as well as help in private placement.

Sustainability model

“We hope to aggregate the portfolios of several fragmented micro-finance institutions, secure necessary customer details, give it the necessary depth and ticket size and securitise the pool. The aim is to bring in scalability and sustainability and we hope to tap a whole range of investors which includes banks, mutual funds, insurance companies, pension funds, private investors, and the non-resident Indian community,” said Mr Royston Braganza, CEO, Grameen Capital India Ltd.

For banks, investment in such a securitised pool would help them meet their priority sector requirements.

For Grameen Bank India Ltd, the revenue would come in through fee-based income, said Mr Alex Counts, President, Grameen Foundation, US.