Vishwavir Ahuja, the former CEO of the Indian division of Bank of America, has joined the board of Ratnakar Bank, a community bank based in rural Kolhapur, as an independent director. According to Mr Ahuja, he hopes to transform the “relatively-unknown rural bank into a major player with a focus on inclusive growth.” Some have speculated that Mr Ahuja’s position on the board will lead to a greater influx of funding through unspecified “connections” with investors at Mumbai-based Centrum, a financial services firm established in 1977.

In 2009, Ratnakar Bank reported INR 25.3 billion (USD 545 million) in total assets, INR 13.1 billion (USD 281 million) in total deposits and INR 8.18 billion (USD 176 million) in outstanding loans.

By Conner Brannen, Research Assistant

About Ratnakar Bank:

Established in 1943, Ratnakar Bank is a commercial bank based in Kolhapur, India. It maintains 84 branches throughout India. In 2009, Ratnakar Bank reported INR 25.3 billion (USD 545 million) in total assets, INR 13.1 billion (USD 281 million) in total deposits and INR 8.18 billion (USD 176 million) in outstanding loans.

Sources and Additional Resources:

The Economic Times: “Bank of America ex-CEO Ahuja joins Ratnakar board,” June 29, 2010: http://economictimes.indiatimes.com/news/news-by-company/corporate-announcement/Bank-of-America-ex-CEO-Ahuja-joins-Ratnakar-board/articleshow/6103396.cms

MICROCAPITAL BRIEF: Microloan Default Risk Rises in India as SKS Microfinance Plans Initial Public Offering (IPO), June 23, 2010: http://www.microcapital.org/microcapital-brief-microloan-default-risk-rises-in-india-as-sks-microfinance-plans-initial-public-offering-ipo/

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