ESAF Small Finance Bank Announces Closing of INR 464 Cr Private Placement
Mumbai – 10th October 2018: ESAF Small Finance Bank announced the completion of private placement of the Company's common stock worth INR 464 Cr. ICICI Securities Ltd served as the advisor for the private placement. Polymath Advisors, Mumbai also associated with ESAF SFB in these transactions. PNB MetLife India Insurance Co. Ltd. and ESAF Multi-State Co-operative have taken a stake of 4.99% each in the Bank. Bajaj Allianz Life Insurance Co. Ltd. and ICICI Lombard General Insurance Co. Ltd. have taken a stake of 4.08% and 1.45% respectively. Seven other investors have also taken stake in ESAF Small Finance Bank.
With the infusion of additional capital the net worth of the bank has increased to 807 crore and the CRAR to 27.9 percent. “We are extremely pleased with the success of this transaction and the confidence expressed in our continued growth and profitability,” said K. Paul Thomas, MD and CEO, ESAF Small Finance Bank. “The proceeds from the private placements will be used for general corporate purposes, capital management and to support future growth” he added.
ESAF has accumulated 3 billion worth deposits in the first half of the Financial Year and has added 2.5 million customers. The bank currently has 422 banking outlets, which include 297 ultra-small branches and 125 new retail banking outlets spread across 11 states in India. With 2 million borrowers, the bank has accumulated 4.4 billion in loans and advances.