DCB Bank has acquired 5.81 per cent stake in Annapurna Microfinance Pvt Ltd for Rs 9.99 crore ($1.45 million), according to a stock market disclosure.

“The initiative of acquiring a strategic equity stake in Annapurna further strengthens our business partnership. DCB Bank has a meaningful presence in the microfinance segment which helps to achieve its financial inclusion goals,” said Murali M Natrajan, MD & CEO, DCB Bank.

DCB Bank Ltd, formerly Development Credit Bank Ltd, was founded in 1930. The bank’s business segments include retail, micro-SMEs and SMEs, mid-corporate, micro-finance,, agriculture, commodities, government, public sector, Indian banks, cooperative banks and non-banking finance companies.

“This capital infusion is a mandate for growth. It will help in striving forward to achieve our goal of serving the financially under-served. Domestic private bank investing in Annapurna is not only a great instance for our company but also good news for the microfinance sector,” said Gobinda Pattnaik, MD, Annapurna Microfinance.

Annapurna Microfinance, a central-eastern India focussed micro lender, operates through its 172 branches in Odisha, Chhatisgarh, Jharkhand, Maharshtra, Madhya Pradesh and Rajasthan.

It has around Rs 720 crore assets under management.

Promoter and promoter group Aga Khan Fund for Economics Development (AKFED) and Platinum Jubilee Investments Ltd hold around 16 per cent stake in the bank.

Source: Dealstreetasia.com

Image Courtesy: The Hindu Businessline