Utkarsh to raise fur­ther funds

Banking Frontiers - - Pb-sfb -

Utkarsh Small Fi­nance Bank is plan­ning to raise `100-`150 crore from its ex­ist­ing in­vestors by sell­ing 10-15% stake. The bank’s cur­rent in­vestors in­clude Aav­ishkar Good­well, an MFI-fo­cused pri­vate eq­uity firm, Lok Cap­i­tal, a ven­ture cap­i­tal fund, Nor­we­gian Mi­cro­fi­nance In­sti­tu­tion, a part­ner­ship be­tween the Nor­we­gian pub­lic and pri­vate sec­tors that in­vests in mi­cro­fi­nance in­sti­tu­tions in de­vel­op­ing coun­tries and pro­vides pro­fes­sional as­sis­tance and tech­ni­cal sup­port, and CDC Group, a UK-based de­vel­op­ment fi­nance in­sti­tu­tion. RBL Bank holds about 10% stake, but it can­not in­crease its stake with­out ap­proval from the Re­serve Bank of In­dia. In Septem­ber 2016, the bank had raised `395 crore from do­mes­tic in­sti­tu­tional in­vestors in an ef­fort to lower the for­eign hold­ing in the com­pany to be­low 49% and com­ply with RBI guide­lines on for­eign share­hold­ing in SFBs.

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