MICROCAPITAL BRIEF: Asian Development Bank (ADB) Places $10m Equity Investment in Satin Creditcare Network to Support Microfinance for Women in Rural India

The Asian Development Bank (ADB), a Philippines-based multilateral institution, recently made an equity investment of USD 10 million in Satin Creditcare Network Limited, a for-profit Indian microfinance institution (MFI). The funding will be used to “expand and broaden” the institution’s services for unserved and underserved households, particularly in rural areas of the country. The investment will be complemented by up to USD 500,000 in support services intended to help Satin implement its cashless transaction platform and improve its corporate governance and risk management. ABD has supported Satin in serving low-income women since 2012. ADB will acquire 3.95 percent of Satin.

Established in 1990, Satin is a Delhi-based microfinance institution serving households as well as micro-, small and medium-sized enterprises. As of December 2015, it reported a gross loan portfolio of INR 32.7 billion (USD 523 million) outstanding to 2.8 million borrowers. For that year, Satin reported return on assets (ROA) of 2.2 percent and return on equity of return on equity (ROE) of 22.2 percent. The institution does not accept deposits.

Headquartered in Manila, ADB is a development finance institution with 67 country members. Its strategic priorities are to foster inclusive growth, facilitate regional integration and ensure environmentally sustainable growth. To accomplish these objectives, ADB deploys loans, technical assistance, grants, equity investments and guarantees in member countries in Asia. As of 2015, ADB reported total assets of USD 117 billion.

By Christian Chartier, Research Associate

Sources and Additional Resources:

[1] Kumar, Amit, “ADB assistance to Indian microfinance co”, BureaucracyToday.com. https://bureaucracytoday.com/top_news.aspx?id=185986

[2] “ADB buys 3.95% in micro-lender Satin Creditcare for Rs 64 cr”, DNAIndia.com. http://www.dnaindia.com/money/report-adb-buys-395-in-micro-lender-satin-creditcare-for-rs-64-cr-2414523

Satin Creditcare Network Limited (SCNL) Financials
https://www.satincreditcare.com/uploads/Satin-Investor-Presentation_Q3FY17.pdf

MicroCapital Coverage of Satin Creditcare Network Limited (SCNL), February 2, 2016
https://www.microcapital.org/microcapital-brief-symbiotics-issues-22m-in-bonds-to-benefit-indian-microfinance-institutions-mfis-annapurna-esaf-microfinance-and-investment-emfil-satin-creditcare/

MicroCapital Coverage of the Asian Development Bank, April 11, 2017
https://www.microcapital.org/microcapital-brief-creditaccess-asia-raises-103m-equity-investors-including-asian-development-bank-istituto-atesino-di-sviluppo-olympus-capital/

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