Thaindian News

Kolkata, Aug 25 (IANS) City-based Bandhan Microfinance is looking for a private investor who can infuse Rs.100 crore into the company, a top company official said here Wednesday.
The company is having talks with two-three foreign institutions.

“We are looking for a private investor. We are in talk with two-three international players. Hopefully, it will be finalised by December,” Chandra Shekhar Ghosh, founder and chief executive officer, told reporters, adding that Bandhan is expecting a Rs.100 crore infusion from the investor.

At present, Small Industries Development Bank of India (SIDBI) is the only institutional investor in Bandhan. It picked up 11 percent stake for Rs.50 crore in 2009.

Bandhan has tied up Western Union Money Transfer Services to offer services to its around three million clients.

The agreement to offer money transfer services was reached between existing principal agent Weizmann Forex and Western Union Wednesday. Bandhan Microfinance, as Western Union’s sub-agent, would activate 800 of its locations by the year-end linking it to more than 200 countries and territories across the world.

Bandhan is operating in 17 states mainly in the eastern and north eastern part of the country through a network of over 1,500 branches.

Bandhan, which currently boasts of a capital adequacy ratio (CAR) of 18 percent, is targeting 10 million clients by 2015, Ghosh said.

The company expects disbursement to be around Rs.18,000 crore in 2015 from Rs.6,000 crore now, he said.

The loan outstanding in the period is expected to be around Rs.8,000 crore from Rs.1,670 crore at present.

Asked about its plan to go for maiden public offer, Ghosh said: “Not before two years.”

Hyderabad-based SKS Microfinance got listed at the bourses earlier this month and delivered a bumper harvest to its investors.