Suryoday Small Finance Bank (SSFB), a scheduled commercial bank, has raised ₹62.14 crore through a private placement from six existing investors, which it intends to use for expansion plans.
It raised the funds in May from institutional investors and private equity firms such as Gaja Capital, Kotak Life, Lok Capital, TIAA, and Kiran Vyapar.
Network
SSFB, which operates across 11 States and Union Territories through a network of over 477 branches, had earlier raised funding from nearly 20 institutional investors.
“This growth capital comes in just as we started re-engineering our business processes and digitising them, including our microfinance vertical; so this is strong backing to pursue our plans,” said SSFB Managing Director and Chief Executive Officer R Baskar Babu. SSFB has launched a working capital loan product for its microfinance institutional customers to meet their urgent liquidity requirements during the lockdown. The minimum loan size is ₹5,000, and customers and take the loan in tranches.
Within a month of launch, the bank opened about 400 accounts for the working capital loan, and intends to launch two branches to provide these loans, it said.
The branches will be opened in Tamil Nadu and Odisha, while SSFB has plans to offer the working capital loan product in another 100 branches within the next one month.
Deposit base
SSFB has a deposit base of more than ₹2,800 crore and a gross loan portfolio of about ₹3,700 crore.
Its net worth as of March 2020 was ₹1,000 crore (provisional) with a capital adequacy ratio of 30 per cent.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.