IndusInd, Grameen Capital, Bandhan complete Rs 75-cr transaction

MUMBAI: IndusInd Bank said that it has completed a Rs 75-crore transaction in association with Grameen Capital India and microfinance institution Bandhan. The three entities have completed a Rs 75 crore portfolio assignment of microfinance receivables, a press release issued here stated.

The transaction was structured and arranged by Grameen Capital India and comprised a pool of advances to the agricultural and allied sectors made by Bandhan-Konnagar and Bandhan Financial Services Private Ltd, the release said.

Bandhan offered a pool of assets amounting to Rs 75 crore for assignment to IndusInd Bank under this transaction, as per the bank’s selection criteria. It has signed a management and collection agreement with the bank and would continue to administer the se loans and channel the collections to the bank, the release said.

Over the last few years, the `originate to distribute’ approach has opened up an additional source of capital for the Indian microfinance sector. Over the last 12-months or so, Grameen Capital has helped microfinance institutions raise over Rs 300-crore using primarily this approach. – PTI