Indian microfinance institution (MFI) Bandhan Financial Services Private Limited recently raised INR 135 crore (the equivalent of USD 29 million) from the International Finance Corporation (IFC), the private-investment arm of the World Bank Group [1]. The deal was arranged by Intellecap, an advisory firm with operations in India and Africa. As of 2010, Bandhan Financial Services reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 614 million, a gross loan portfolio of USD 565 million, approximately 3.2 million borrowers, return on assets (ROA) of 5.32 percent and return on equity (ROE) of 41.1 percent.
By Ashim Kar, Research Associate
About the International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the World Bank Group headquartered in Washington, DC, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reports net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent and total investment mobilization of USD 18.4 billion to 528 projects.
About Bandhan Financial Services Private Limited
Bandhan Financial Services Private Limited is a microfinance institution (MFI) based in Kolkata, India, that was founded in 2002. As of 2011, it operates approximately 1,550 branches in 18 states in India. It offers microenterprise loans as well as loans for individuals to pay for health emergencies. As of 2010, Bandhan Financial Services reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 614 million, a gross loan portfolio of USD 565 million, approximately 3.2 million borrowers, return on assets (ROA) of 5.32 percent and return on equity (ROE) of 41.1 percent.
About Intellecap
Intellecap is an advisory firm with operations in India and Africa. Intellecap’s Investment Banking arm works in the sectors of healthcare, education, financial inclusion, clean technology, agriculture and rural businesses.
Source and Additional Resources:
[1] The Statesman, September 13, 2011, “IFC invests Rs 135 crore in Bandhan”, http://www.thestatesman.net/index.php?option=com_content&view=article&show=archive&id=382269&catid=40&year=2011&month=09&day=6&Itemid=66
Microcapital.org story, August 6, 2011, “MICROCAPITAL BRIEF: United Bank of India to Loan $22m to Microfinance Institution Bandhan Financial Services Amid “Opening Up of Bank Credit”, https://www.microcapital.org/microcapital-brief-united-bank-of-india-to-loan-22m-to-microfinance-institution-bandhan-financial-services-amid-%E2%80%9Copening-up-of-bank-credit%E2%80%9D/
MicroCapital Universe Profile: Bandhan Financial Services Private Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bandhan+Financial+Services+Private+Limited
MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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