Suryoday Small Finance Bank raises ₹62.14 cr for expansion

Suryoday Small Finance Bank (SSFB), a scheduled commercial bank, has raised ₹62.14 crore through a private placement from six existing investors, which it intends to use for expansion plans.

It raised the funds in May from institutional investors and private equity firms such as Gaja Capital, Kotak Life, Lok Capital, TIAA, and Kiran Vyapar.

Network

SSFB, which operates across 11 States and Union Territories through a network of over 477 branches, had earlier raised funding from nearly 20 institutional investors.

“This growth capital comes in just as we started re-engineering our business processes and digitising them, including our microfinance vertical; so this is strong backing to pursue our plans,” said SSFB Managing Director and Chief Executive Officer R Baskar Babu. SSFB has launched a working capital loan product for its microfinance institutional customers to meet their urgent liquidity requirements during the lockdown. The minimum loan size is ₹5,000, and customers and take the loan in tranches.

Within a month of launch, the bank opened about 400 accounts for the working capital loan, and intends to launch two branches to provide these loans, it said.

The branches will be opened in Tamil Nadu and Odisha, while SSFB has plans to offer the working capital loan product in another 100 branches within the next one month.

Deposit base

SSFB has a deposit base of more than ₹2,800 crore and a gross loan portfolio of about ₹3,700 crore.

Its net worth as of March 2020 was ₹1,000 crore (provisional) with a capital adequacy ratio of 30 per cent.