Utkarsh Micro Finance is one of the 10 non-banking financial companies (NBFC) that has won a small bank licence from the RBI
Utkarsh Micro Finance Pvt Ltd is set to raise INR 350 crore from domestic investors in a bid to bring the foreign shareholding in the company to below 50%, reports a business daily.
“The talks to raise fresh equity are almost complete and the documentation will begin too. There will be structural changes too as we will form a holding company which in turn will have a holding in the bank,” MD Govind Singh has been quoted as saying.
“In the primary transaction all the current shareholders will continue to stay, but in the secondary transaction some on the existing investors will off load stake. These talks are on too," adds Singh.
Existing investors in the company include Aavishkar Goodwell, Lok Capital, Commonwealth Development Corp, International Finance Corporation (IFC) and Norweignian Microfinance Institution.
Utkarsh Micro Finance is one of the 10 non-banking financial companies (NBFC) that has won a small bank licence from the RBI.
Companies with small bank licences are trying to lower foreign shareholding to adhere to the RBI's guidelines.
The RBI issued small bank licences to 10 entities in October 2015 with a timeframe of 18 months to convert to banks.
Utkarsh Micro Finance plans to be a small finance bank by October. To begin with, it would open 125 new branches in addition to the 325 microfinance branches it already has.
Utkarsh Micro Finance operates in 9 states, including Uttar Pradesh, Bihar, Jharkhand, Maharashtra, Madhya Pradesh, National Capital Region, Uttarakhand, Himachal Pradesh and Haryana.
Utkarsh Micro Finance Pvt Ltd is set to raise INR 350 crore from domestic investors in a bid to bring the foreign shareholding in the company to below 50%, reports a business daily.
“The talks to raise fresh equity are almost complete and the documentation will begin too. There will be structural changes too as we will form a holding company which in turn will have a holding in the bank,” MD Govind Singh has been quoted as saying.
“In the primary transaction all the current shareholders will continue to stay, but in the secondary transaction some on the existing investors will off load stake. These talks are on too," adds Singh.
Existing investors in the company include Aavishkar Goodwell, Lok Capital, Commonwealth Development Corp, International Finance Corporation (IFC) and Norweignian Microfinance Institution.
Utkarsh Micro Finance is one of the 10 non-banking financial companies (NBFC) that has won a small bank licence from the RBI.
Companies with small bank licences are trying to lower foreign shareholding to adhere to the RBI's guidelines.
The RBI issued small bank licences to 10 entities in October 2015 with a timeframe of 18 months to convert to banks.
Utkarsh Micro Finance plans to be a small finance bank by October. To begin with, it would open 125 new branches in addition to the 325 microfinance branches it already has.
Utkarsh Micro Finance operates in 9 states, including Uttar Pradesh, Bihar, Jharkhand, Maharashtra, Madhya Pradesh, National Capital Region, Uttarakhand, Himachal Pradesh and Haryana.
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