Strengthening Microfinance Institutions (MFIs) And Small Finance Banks (SFBs)

Enabling MFIs and SFBs to seize opportunities and create greater financial inclusion in India.

Despite contributing 47% to India’s GDP, the rural segment’s share of credit remains fairly low at about 9-10% of the overall credit outstanding. India’s NBFC-MFIs and SFBs play a very important role in serving the unbanked and underbanked segment of the population and thus stare at a large unaddressed opportunity.
SBICAP supports MFIs and SFBs as they look to grow and expand the scope of microlending in achieving financial inclusion. Our work in this sector includes several mandates such as:

• Pre-IPO of Suryoday Small Finance Bank, with a placement of INR 900 mn to SBI Life, where we created early momentum in the deal by procuring the first and the largest investor in the pre-IPO round.
• IPO of Suryoday Small Finance Bank, where, despite a volatile market, the issue witnessed good investor demand with overall subscription of 2.02x driven by a solid retail subscription of 2.42x. 35% of the total institutional order book (across pre-IPO, anchor and main book) was procured by SBICAP-Investec from high quality investors such as SBI Life, MIT, SBI General, SBI, and others.
• QIP of CreditAccess Grameen Limited.
• BRLM to upcoming IPOs of financial inclusion players like JANA Small Finance Bank, Fincare Small Finance Bank, Northern ARC Capital Limited, and Arohan Financial Services Limited amongst others.Apart from advisory and fundraising support, SBICAP in partnership with Investec offers street-leading research capabilities and unparalleled access to industry experts and a global investor pool. In an effort to create greater awareness of the trends in the sector, we have undertaken several initiatives, such as hosting webinars and discussions with industry experts and publishing thematic reports. The SBICAP-Investec teams have hosted a Microfinance Conference for the last 6 years, which is well-attended by eminent leaders from the industry.