Development Credit Bank (DCB), an Indian private sector bank, is creating its own microfinance business with the help of the Aga Khan Development Network (AKDN), the manager of a network of ten microfinance institutions (MFIs). DCB is seeking to increase its financing of agricultural loans. The Reserve Bank of India (RBI), the nation’s central bank, requires that 40 percent of the advances of the DCB be used for what are known as “priority sectors” (see Business Standard), which include the mentioned loan type. DCB is currently below the requirement, with 32.73 percent lent within priority sectors.

Continue reading “MICROCAPITAL STORY: India’s Development Credit Bank (DCB)Partners with the Aga Khan Development Network’s (AKDN) Aga Khan Agency for Microfinance (AKAM)”