The Indian unit of UK-based commercial institution Standard Chartered Bank (SCB) recently notified MicroCapital that it has disbursed a loan of USD 5 million to Cambodia’s Prasac, a microlender that seeks to support agricultural development. The purpose of the loan is for on-lending to microfinance clients [1].
This loan marks SCB India’s first deal in Cambodia. SCB India has 100 branches in India, and SCB reported assets of USD 637 billion in 2012. As of 2012, Prasac reported total assets of USD 252 million, a gross loan portfolio (GLP) of USD 215 million, 127,947 borrowers, USD 57.1 million in deposits, 291,087 depositors, return on assets (ROA) of 5.7 percent and return on equity (ROE) of 39.5 percent [2].
By Meraj Husain, Research Associate
About Standard Chartered Bank
Founded in 1969, Standard Chartered Bank is a financial services company based in the United Kingdom. In 2012, SCB reported total assets of USD 637 billion, return on equity of 12.8 percent and USD 1 billion invested in microfinance institutions in Asia and Africa.
About Prasac
Prasac was founded as a credit component of an agriculture support program funded by the European Union and implemented by the Royal Government of Cambodia. It was registered in 2004 with the Ministry of Commerce as a private limited liability company and is licensed by the National Bank of Cambodia (NBC) to offer financial services. As of 2012, Prasac reported total assets of USD 252 million, a gross loan portfolio (GLP) of USD 215 million, 127,947 borrowers, USD 57.1 million in deposits, 291,087 depositors, return on assets (ROA) of 5.7 percent and return on equity (ROE) of 39.5 percent.
Sources and Additional Resources
[1] Information provided to MicroCapital by Standard Chartered Bank India, January 2014
[2] Prasac: “Remarks from President and CEO,” http://www.prasac.com.kh/index.php?lang=en
MicroCapital, September 18, 2013, “Standard Chartered Bank (SCB) Loans $11m to India’s Equitas Microfinance, Satin Credit Care,” https://www.microcapital.org/microcapital-brief-standard-chartered-bank-scb-loans-11m-equitas-microfinance-satin-credit-care/
MicroCapital, October 21, 2012, “responsAbility Social Investments Loans $8m to Prasac of Cambodia, $1m to ASKI of the Philippines,” https://www.microcapital.org/microcapital-brief-responsability-social-investments-loans-8m-to-prasac-of-cambodia-1m-to-aski-of-the-philippines/
MicroCapital Universe Profile: Standard Chartered Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Standard+Chartered+PLC
MicroCapital Universe Profile: Prasac, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Prasac
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