MICROCAPITAL BRIEF: India’s Bandhan Microfinance Institution Seeking $21m Investment from Private Investor

Bandhan, an Indian microfinance institution, recently announced it is seeking INR 1 billion (USD 21 million) in investment capital from private investors. Bandhan is a non-government organization and according to the Microfinance Information Exchange, reported a gross loan portfolio as of 2008 of USD 103.8 million and total assets of USD 170.9 million.

Currently, the Small Industries Development Bank of India (SIDBI), an Indian bank providing credit to medium- and large-scale microfinance institutions, is the only institutional investor in Bandhan.

By Jennifer Shevock, Research Associate

About Bandhan:
Bandhan is a non-government organization and is registered with the Reserve Bank of India and was established to address poverty alleviation and women empowerment. According to the Microfinance Information Exchange, Bandhan reported a gross loan portfolio as of 2008 of USD 103.8 million and total assets of USD 170.9 million.

About Small Industries Development Bank of India (SIDBI):
The Small Industries Development Bank of India (SIDBI) was established by the Indian Parliament in 1990. It provides credit to medium- and large-scale microfinance institutions. SIDBI reports having facilitated total financial assistance equivalent to USD 397 million during the fiscal year ending March 2009. This amount has gone toward various ventures such as term loans, equity support and capacity building grants to microfinance institutions. SIDBI is listed on, but does not report data to, the MIX Market.

Sources and Additional Resources:
“Bandhan looking for international private investor” August 25, 2010. http://in.news.yahoo.com/43/20100825/836/tbs-bandhan-looking-for-international-pr.html

MicroCapital Universe: Bandhan: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bandhan+Microfinance

MicroCapital Universe: Small Industries Development Bank of India (SIDBI): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Small+Industries+Development+Bank+of+India+%28SIDBI%29

Microfinance Information Exchange: http://www.mixmarket.org/mfi/bandhan

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