RBL Bank has raised Rs 330 Cr from the UK-based development finance institution, CDC Group Plc (CDC), through Basel III compliant Tier II capital. The debt raised will strengthen the capital base of the bank, which in turn will support its businesses including SME lending, agribusiness financing and financial inclusion. In addition, the infusion will help the bank expand to new regions within India.
Vishwavir Ahuja, Managing Director and CEO, RBL Bank, said the infusion of funds is a testimony to the trust that CDC Group has in its capability to deliver highly-skilled and technology-driven services. “It is also a reaffirmation of the close and long-term relationship we share with CDC. We will continue to invest significantly in building a strong banking platform that will encompass technology, human resource, network, risk management and regulatory compliance,” said Ahuja.
CDC has in the past invested in RBL Bank by way of equity of Rs 174 Cr in March 2014 followed by a pre-IPO placement of Rs 44.5 Cr in October 2015. In fact, CDC has played a crucial role in supporting the bank’s growth from a regional bank to a pan-India bank.
According to Holger Rothenbusch, managing director, CDC, though the debt market in the Indian financial sector is well developed, the market for tier-II capital is weak. “Our support will enable RBL Bank to reach more customers, provide more jobs, and boost the level of financing available to SMEs and agribusiness in the country,” he said.
Founded in 1943, RBL Bank was traditionally concentrated in Maharashtra, Karnataka and Goa. It currently has 201 branches and 373 ATMs across 16 Indian states and Union Territories serving over two million customers. As of March 31, 2016, RBL Bank’s total business size is over Rs 45000 Cr and it employs close to 3900 people.
RBL Bank raises Rs 330 Cr from CDC Group
