New Delhi, Apr 12 (KNN) International Finance Corporation (IFC), a member of the World Bank Group has made an equity investment of USD 22 million in Kolhapur-based Ratnakar Bank to support financing of Micro, Small and Medium Enterprises (MSMEs) and agri-based businesses.  

The bank will step up its reach and also lend to small businesses and micro-borrowers, a majority of who would be women, according to an IFC statement.
 “A sizable proportion of these borrowers are likely to be from the low income states of Rajasthan, Madhya Pradesh and Chhattisgarh,” it said.

 “IFC’s investment will help Ratnakar Bank reach low-income segments, including women in rural areas,” said Thomas Davenport, IFC Director for South Asia.

He also added that the investment was in line with IFC’s strategy to promote financial inclusion and support under-financed agri-based and small businesses.

The funding is a part of the Rs 324 crore the local bank raised from a clutch of investors by issuing 3 crore new shares.

Ratnakar Bank Managing Director and Chief Executive Vishwavir Ahuja said the funding would help it strengthen its services to MSMEs.

IFC’s engagement with Ratnakar Bank will also facilitate the development of a social and environment management system for growing the business in a sustainable manner. The development of such a system will help ensure that environmental and social risks are well managed.

A sizable proportion of such borrowers are likely to be from low-income states of Rajasthan, Madhya Pradesh and Chhattisgarh, the release said.

At present, Ratnakar Bank has about 125 branches and 184 automated teller machines across 11 states in India.

Headquartered in the western Indian city of Kolhapur in Maharashtra state, the bank has 125 branches. It had assets of USD 2.4 billion as of March 31.  (KNN)