Singapore Fund To Invest In Kolkata Financial Firm

Singapore's sovereign wealth fund GIC is investing 10.2 billion rupees ($165.5 million) in Bandhan Financial Services, which is setting up one of India's two newest banks, Bandhan's chairman said on Tuesday.

 

The company will get a total equity investment of 16 billion rupees, including 5.8 billion rupees from existing investor IFC, Bandhan Chairman Chandra Shekhar Ghosh said.

 

Ghosh declined to say how much stake GIC would get. IFC, part of the World Bank Group, owns 10.8 per cent of Bandhan and its stake will increase after the latest investment.

 

Bandhan and IDFC were the only two companies which won bank permits from the Reserve Bank of India last year in what was the first bank licensing process in a decade.

 

"With this new investment, we will be able to launch a well capitalised universal bank which can focus on building assets and manage risks properly," Ghosh said.

 

Bandhan plans to start banking operations by October this year.

 

The Kolkata-based company, a specialist in small-value loans, said it would have a capital base of about 32 billion rupees after the latest round of investment.

 

(Agencies)