CDC, the UK’s development finance institution, has today announced it is providing a US$50m long-term loan to RBL Bank in India.
The provision of the tier-II debt will support the RBL’s strong growth into new regions of India and its focus on financial inclusion, agribusiness financing and lending to SMEs, while at the same time strengthen the capital base of the bank.
RBL Bank— one of the country’s fastest growing private sectors banks — is an existing CDC investee company having received a US$28m equity investment in March 2014 and subsequent pre-IPO investment of US$7m in October 2015. CDC has supported the bank’s strong growth as it developed from a regional bank to a wider network of 201 branches and 373 ATMs across 16 Indian states and Union Territories serving over 2 million customers.
Founded in 1943, RBL Bank was traditionally concentrated in Maharashtra, Karnataka and Goa. In 2010, however, a new management team was brought in to pursue a strategy to expand beyond the bank’s western India roots. Today, RBL Bank’s total business size is US$6.88 Billion as of March 31, 2016 and it employs close to 3900 people. RBL has been creating over 400 banking jobs each year from 2012 to 2016 and has the potential to generate jobs and livelihoods indirectly for an estimated 330,000 people over the next five years by expanding its loan book.