-Increases stake from 60.48% to 100%
-Buyout to help RBL Bank expand Inclusive Finance across geographies
Mumbai, June 28, 2018: RBL Bank, one of India’s fastest growing private sector banks, today announced that it has acquired 100% stake in Swadhaar Finserve Pvt. Ltd. (SFPL) – an exclusive business correspondent of RBL Bank engaged in offering services to the underbanked segment in rural and semi-urban areas.
RBL Bank has brought this additional stake from marquee investors including global financial inclusion nonprofit Accion, which has been instrumental in shaping Swadhaar into one of India’s most effective lenders for underserved families and businesses. SFPL works as a last-mile distributor of comprehensive financial services and products, particularly loans and savings products, to low-income households and microenterprises across India.
Swadhaar’s extensive reach – with a network of 331 branches across 16 states and 2 union territories – and transformation from an NBFC to one of India’s first banking correspondents pioneered an innovative way to reach underserved communities throughout the country. Today, the company has an AUM of around Rs. 2,000 crores and reaches 750,000 customers. RBL Bank’s acquisition of SFPL is in line with its stated policy of strengthening its market position in this inclusive finance segment. SFPL and a few other select BC partners help RBL Bank in having a twin strategy of distribution, which is key towards having a diversified pan-India presence.
Harjeet Toor,Head – Retail, Inclusion and Rural business, RBL Bank said, “The acquisition of 100% stake in Swadhaar FinServe is as per our stated intent and goes in line with our broad vision and strategy. We have been successful in expanding our inclusive finance portfolio by reaching the hinterlands of India and Swadhaar has been instrumental in this effort. The Bank sees Swadhaar as a vehicle for becoming the market leader in the space of inclusive finance, especially catering to the underserved households and small businesses. In the future, we will also be looking to leverage Swadhaar’s growing branch network to offer other relevant products to customers in semi-urban and rural markets.”
Veena Mankar, Founder –Swadhaar Finserve Pvt. Ltd said, “Swadhaar was started with the objective of serving those who were unserved or under served by mainstream financial institutions, covering vulnerable households, micro and small enterprises. I believe this mission is best served under a bank’s umbrella. With the 100% acquisition by RBL Bank we have achieved a most favourable outcome for our customers and employees. The strategy for this was chalked out two years ago and I am pleased at the smooth transition. Accion, our anchor investor since inception, has facilitated and supported this process. With RBL Bank’s focus on financial inclusion, our mission will not only be carried forward, but enhanced.”
“Swadhaar’s continued growth and focus on social inclusion, as well as its transformation into one of the largest banking correspondents in India, demonstrates the potential for this new model to reach underserved families and small businesses. We are excited for this next phase of the company’s growth and impact, as the potential we in both Swadhaar and the banking correspondent model has been realized,” said Michael Schlein, President and CEO of Accion.
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About RBL Bank
RBL Bank is one of India’s fastest growing private sector banks with an expanding presence across the country. The Bank offers specialized services under six business verticals namely: Corporate & Institutional Banking, Commercial Banking, Branch & Business Banking, Agribusiness Banking, Development Banking and Financial Inclusion, Treasury and Financial Markets Operations. It currently services over 4.5 million customers through a network of 265 branches, 197 banking outlets and 388 ATMs spread across 20 Indian states and Union Territories. For further details, please visitwww.rblbank.com
About Accion
Accion is a global nonprofit committed to creating a financially inclusive world, with a pioneering legacy in microfinance and fintech impact investing. We catalyze financial service providers to deliver high-quality, affordable solutions at scale for the three billion people who are left out of – or poorly served by – the financial sector. For more than 50 years, Accion has helped tens of millions of people through its work with more than 90 partners in 40 countries. More athttp://www.accion.org.
Media Contact(s):
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Abhijit Somvanshi |
Shwetha Thomas |
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Head – Marketing & Communications |
DVP – Marketing & Communications |
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RBL BANK |
RBL BANK |
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T: +91 22-43020565 | M: +91 9920915158 |
T: +91 22-43020546 | M: +91 9821287390 |
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E: abhijit.somvanshi@rblbank.com |