MICROCAPITAL BRIEF: Indian Microfinance Institution (MFI) Ujjivan Looking to Raise $138m from Private, Public Sector Banks

Ujjivan Financial Services, an Indian microfinance institution (MFI), reportedly plans to raise up to INR 6.2 billion (USD 138 million) from the Small Industries Development Bank of India (SIDBI), a government-owned financial institution, along with other unspecified private and public-sector banks. Fundraising in the Indian microfinance sector has been notoriously sloe since loan portfolios began to deteriorate in November 2010, but Ujjivan has still managed to raise INR 1.8 billion (USD 40 million) over the last two months. In July, Ujjivan issued non-convertible debentures worth INR 550 million (USD 12 million), which were privately placed by Standard Chartered Bank, a British financial services company. And in August, Ujjivan raised INR 1.25 billion (USD 28 million) from SIDBI and three commercial banks: Axis Bank, Corporation Bank and the State Bank of Travancore. According to Samit Ghosh, founder and managing director of Ujjivan, “we were not confident about whether we would be able to raise the capital required for.... Continue reading here. Contact MicroCapital to receive a complete sample issue of the MicroCapital Monitor, the monthly microfinance newspaper.