[Funding alert] Suryoday Small Finance Bank raises Rs 62.14 Cr from existing investors
Suryoday Small Finance Bank (SSFB), a scheduled commercial bank which provides microfinance loans to customers, has closed an equity funding in the month of May 2020. The bank has raised Rs 62.14 crore from existing investors including Gaja Capital, Kotak Life, Lok Capital, TIAA, and Kiran Vyapar.
SSFB has launched a working capital loan product for its MFI customers to meet their urgent liquidity requirements during the lockdown. The minimum loan size is Rs 5,000. The customers can avail this product based on their requirements and get it sanctioned in one go from their nearest SSFB branches.
Till now, SSFB has opened around 400 accounts and the target is to do a full fledged launch from two branches — one in Tamil Nadu and another in Odisha. It will expand to 100 branches within the next one month.
R Baskar Babu, MD and CEO of Suryoday Small Finance Bank, said,
“This growth capital comes in just as we started re-engineering our business processes and digitising them, including for our microfinance vertical, so this is strong backing to pursue our plans”
Commenced banking operations in January 2017, SSFB has gradually diversified its product offerings to offer retail loans like home loans, commercial vehicle loans, secured and unsecured loans. The bank operates across 11 states and union territories through a network of over 477 branches/doorstep-centers – with a deposit base of Rs 2,800 crore and a loan portfolio of Rs 3,700 crore.
The bank has over 20 institutional investors with a healthy mix of institutional investors, development funds and private equity investors.
SSFB's net worth as of March 2020 stood at Rs 1,000 crore (provisional) with a capital adequacy ratio of 30 percent and credit ratings A1+ by ICRA and CRISIL. It is also backed by marquee investors like IFC, IDFC Bank, TVS Capital, Shriram Growth Fund, HDFC Holdings, HDFC Life, Kotak Mahindra Life Insurance, and many more.