New Delhi, India, April 11, 2013—IFC,
a member of the World Bank Group, has made an equity investment of $22
million in Ratnakar Bank to support financial inclusion and increase financing
to agri-based businesses and micro, small and medium enterprises.
The bank expects to significantly enhance
its reach among small businesses and micro-borrowers. In the coming years,
a majority of them will be women. A sizable proportion of these borrowers
are likely to be from low income states of Rajasthan, Madhya Pradesh and
“IFC’s support will help us adopt
best practices in risk management, and develop tailored products, sales
and delivery channels to strengthen our services for micro, small and medium
enterprises,” said Vishwavir Ahuja, Managing Director, & CEO, Ratnakar
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
“IFC’s investment will help Ratnakar
Bank reach low-income segments, including women in rural areas,” said
Thomas Davenport, IFC Director for South Asia. “The investment is in line
with IFC’s strategy to promote financial inclusion and support under-financed
agri-based and small businesses.”
The Kolhapur-based bank has strong presence
in semi-urban and rural markets of Maharashtra, Karnataka and Goa. In the
last three years, the bank has expanded its network. Currently, it has
125 branches and 184 automated teller machines spread across 11 states
in India. The bank has tripled its balance sheet over the last few years
with assets growing by 123 percent in financial year 2012 compared to 2011.
As of March 31, 2013, the bank’s assets are about $ 2.4 billion.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.