RBL Bank has increased its stake from 30 per cent to 60.48 per cent in Swadhaar FinServe - a captive business correspondent of RBL Bank. Swadhaar FinServe is engaged in offering services to the financial inclusion segment covering MSME & Micro banking in rural and semi-urban areas. RBL Bank bought the additional 30.48 per cent stake in Swadhaar Finserve, "in line with its business strategy to leverage technologies and partnerships and extend its service offerings to the under-banked," the mid-sized lender said.
RBL Bank holds rights to increase its stake to 100 per cent subject to regulatory approvals. Currently, the Swadhaar business operates in 17 states and union territories through 242 branches. Swaadhar has helped the bank to create an AUM of around Rs. 1,000 crore as of September 2017.
Speaking on the investment, RBL Bank's Managing Director & CEO, Vishwavir Ahuja, said: "Deepening our relationship with Swadhaar Finserve, now a subsidiary of the Bank, is in sync with our broad vision and strategy. Over the past few years, we have been able to establish a sizable business in the financial inclusion segment with an advances book of around Rs. 4,600 crores serving 1.9 million borrowers. The bank sees Swadhaar as a vehicle to execute its strategy to become a significant player in the financial inclusion and micro banking segment, catering to the economically weaker and underserved households."