Private lender RBL Bank Ltd has raised debt funding worth Rs 330 crore ($50 million) as tier II capital from UK-based development finance institution, CDC Group Plc (CDC), it said on Tuesday.
The debt capital would strengthen the bank’s capital base, which in turn will support its businesses such as SME lending, agribusiness financing and financial inclusion.
The infusion will also help it expand to new regions within India, it said in a statement.
RBL Bank is an existing CDC investee firm. It received equity investment worth Rs 174 crore in March 2014 and a subsequent pre-IPO investment worth Rs 44.5 crore in October 2015.
The bank grew from a regional bank to a pan-India bank with 201 branches and 373 ATMs across 16 Indian states and union territories serving over 2 million customers.
CDC managing director Holger Rothenbusch said, “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''.
Founded in 1943, RBL Bank was traditionally concentrated in Maharashtra, Karnataka and Goa. As of March 31, 2016, its total business size is over Rs 45,000 crore and it employs close to 3,900 people.
The initial public offering of RBL Bank Ltd was subscribed almost 70 times as investors bid heavily for shares of the first private-sector bank to go public in a decade.
When the issue debuted RBL Bank's listing was at a premium of almost 22% to the issue price before extending gains to close 33%.
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