ESAF Small Finance Bank announces closing of INR 464 Cr Private Placement – 10th October 2018
ESAF Small Finance Bank Announces Closing of INR 464 Cr Private Placement
Chennai – 10th October 2018: ESAF Small Finance Bank announced the completion of private placement of the Company’s common stock worth INR 464 Cr. ICICI Securities Ltd served as the advisor for the private placement. Polymath Advisors, Mumbai also associated with ESAF SFB in these transactions. PNB MetLife India Insurance Co. Ltd. and ESAF Multi-State Co-operative have taken a stake of 4.99% each in the Bank. Bajaj Allianz Life Insurance Co. Ltd. and ICICI Lombard General Insurance Co. Ltd. have taken a stake of 4.08% and 1.45% respectively. Seven other investors have also taken stake in ESAF Small Finance Bank.
With the infusion of additional capital the net worth of the bank has incre ased to 807 crore and the CRAR to 27.9 percent. “We are extremely pleased with the success of this transaction and the confidence expressed in our co nti nued growth and profitability,” said K. Paul Thomas, MD and CEO, ESAF Small Finance Bank. “The pr oceeds from the private placements will be used for ge neral corporate purposes, capital management and to support future gr owth” he added. ESAF has accu mul ated 3 billion worth deposits in the first half of the Fina n cial Year and has added 2.5 million cu sto mers. The bank cur rently has 422 banking outlets, which include 297 ultra-small branches and 125 new retail banking out lets spr ead across 11 states in India. With 2 million borro wers, the bank has accu mul ated 4.4 billion in loans and advances.
About ESAF Small Finance Bank:
The journey of ESAF began in a small house named ‘Little’ at Thrissur in 1992. Contrary to what the name of the ho use sounds, ESAF Society was launched with a bigger vision of sustainable holistic transformation of the poor and the marginalized. The success of Grameen bank in Bangladesh reinforced the vision of K. Paul Thomas the Founder and Managing Director of ESAF. In 1995, he launched Micro Enterprises Development (MED) services and it res ul ted in the formation of ESAF Microfinance and Investments Pvt. Ltd., in 2008. In 2015, the Reserve Bank of India, the financial regulator in the country has granted in-principle license to ESAF to launch a Small Finance bank. ESAF Small Finance Bank was one amongst the ten NBFCs to receive an ‘in principle’ approval fro m the Reserve Bank of India (RBI) to set up a Small Finance Bank in the private sector. In November 2016, the final license was issued by the RBI. ESAF Small Finance Bank was incorporated on May 05, 2016, with its Regis tered Office in Thrissur.