Bandhan Financial Services, a micro-finance company which is in the process of setting up a universal bank, has received commitment to equity infusion of Rs 1,100 crore by two entities.
IFC, the private arm of World Bank, and GIC, the sovereign wealth fund of Singapore, would infuse equity in Bandhan, following which the capital base would increase from Rs 2,100 crore to Rs 3,200 crore.
CMD of Bandhan C S Ghosh said in a statement that this was well above the RBI-stipulated norm of Rs 500 crore for setting up a new bank.
The capital adequacy ratio is 21 per cent at present.
Bandhan had obtained an in-principle approval from RBI
in April 2014 to set up a bank with 18 months time.
"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.
