Private lender, RBL Bank, on Thursday increased its stake in microlender Swadhaar Finserve Pvt Ltd (SFPL) to 100 percent from 60.48%.
RBL Bank has brought this additional stake from marquee investors including global financial inclusion nonprofit Accion.
"The acquisition of 100% stake in Swadhaar FinServe is as per our stated intent and goes in line with our broad vision and strategy. We have been successful in expanding our inclusive finance portfolio by reaching the hinterlands of India and Swadhaar has been instrumental in this effort," said Harjeet Toor, Head – Retail, Inclusion and Rural business, RBL Bank.
Mumbai-based financial services products distributor, SFPL, works as a last-mile distributor of comprehensive financial services and products, particularly loans and savings products, to low-income households and microenterprises across India.
"With the 100% acquisition by RBL Bank, we have achieved a most favourable outcome for our customers and employees. The strategy for this was chalked out two years ago and I am pleased at the smooth transition," said Veena Mankar, founder, SFPL.
Currently, SFPL operates 331 branches across 16 states and two union territories and has an AUM (Assets under management) of around Rs 2,000 crore and reaches 750,000 customers.
SFPL and a few other select partners help RBL Bank in having a twin strategy of distribution, which is key towards having a diversified pan-India presence.
Earlier last year, RBL Bank had increased its stake in SFPL to 60.48 percent for an undisclosed sum.
First Published: IST