ESAF Small Finance Bank raises Rs 464 cr through private placement of shares

ESAF Small Finance Bank Wednesday said it has raised Rs 464 crore through private placement of its common stock and will use the proceeds to support growth as well as for general corporate purposes.

In the private placement, PNB MetLife India Insurance Co Ltd and ESAF Multi-State Co-operative have taken a stake of 4.99 per cent each in ESAF Small Finance Bank (SFB), the company said in a statement.

Among others, Bajaj Allianz Life Insurance and ICICI Lombard General Insurance have taken a stake of 4.08 per cent and 1.45 per cent respectively.

Seven other investors have also taken stake in ESAF Small Finance Bank.

With the infusion of additional capital, the net worth of the bank has increased to Rs 807 crore and the CRAR to 27.9 per cent, ESAF said.

"The proceeds from the private placements will be used for general corporate purposes, capital management and to support future growth," said K Paul Thomas, MD and CEO, ESAF Small Finance Bank.

He said the infusion reflects the confidence in the company's continued growth and profitability.

ESAF said it has accumulated Rs 3 billion worth deposits in the first half of the financial year and has added 2.5 million customers.

With 2 million borrowers, the bank has accumulated 4.4 billion in loans and advances, it added.

The bank currently has 422 banking outlets, which include 297 ultra-small branches and 125 new retail banking outlets spread across 11 states in India.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)