Private sector lender RBL Bank is planning to hire a chief executive to run microlender Swadhaar FinServe, where it has raised its stake to 100% from 60.48% this week.
As per an ET report, RBL will run Swadhaar as a separate entity and plans to make it a significant vehicle for its future expansions. Veena Mankar, Swadhaar’s founder and the current executive chairperson will take the non-executive position.
This week, RBL Bank announced it has raised its stake in microlender Swadhaar FinServe to 100 percent to help expand its financial inclusion initiatives. RBL Bank had earlier held 60.48 percent stake in Swadhaar, which is an exclusive business correspondent of the lender.
In a statement, RBL bank said, “RBL Bank has brought this additional stake from marquee investors, including global financial inclusion non-profit, Accion.”
However, it did not disclose the financial details of the acquisition which has made Swadhaar its wholly-owned subsidiary now. RBL has purchased 35.94% from Accion International and 3.58% from promoters and others.
With the 100% acquisition, RBL Bank now plans to use Swadhaar’s network to take all its retail loan offerings and loans against property to the underserved customers. As per Harjeet Toor, head of retail, inclusion and rural business at the bank, “All future expansion will happen through Swadhaar.”
The bank plans to convert some of its branches into banking outlets which is consistent with RBI rule
Swadhaar, which operates in 16 states through its 331 branches, has been working exclusively as a business correspondence for RBL Bank since 2014. It manages about Rs 2000 Cr worth business for the lender and boasts of 7.5 lakh customers.
Image Credits: RBL Bank