Equity Investment and Loan for RBL Bank for Supporting Financial Inclusion Project

India: Equity Investment and Loan for RBL Bank for Supporting Financial Inclusion Project

Project Name

Project Number

49207-001

Borrower / Company

RBL Bank Limited

Country / Economy

India

Location

Type or Modality of Assistance

3354

Loan

Ordinary capital resources

USD 100.00 million

Committed

Strategic Agendas

Inclusive economic growth
Regional integration

Drivers of Change

Governance and capacity development
Knowledge solutions
Partnerships
Private sector development

Sector / Subsector

Finance / Finance sector development

Gender

Gender equity

Responsible ADB Department

Private Sector Operations Department

Responsible ADB Division

Portfolio Management Division, PSOD

Responsible ADB Officer

Doukidis, Doukas

Project Sponsor(s)

Description

Objectives and Scope

ADB provided to RBL: (1) An equity investment in Indian rupee (INR) of US41.8mn to support Tier 1 capital ahead of

full implementation of Basel III; (2) Senior unsecured loan of US$100mn payable in 5 years. Full disbursement completed last September 2016 intended to (i) support MSMEs and small farmers in the agribusiness sector, and (ii) address the financing gap for longer tenor

funds; (3) Technical Assistance (TA) of up to US$1mn to build RBL's risk management and IT capabilities, specifically in its development of a customized loan origination system for agribusiness banking and DB & FI.

Status of Development Objectives

In progress.

Status of Operation/Construction

Operation loan fully disbursed and repaying.

Linkage to Country/Regional Strategy

Under ADB''s Strategy 2020 and Midterm Review of Strategy 2020, ADB aims to strengthen the finance sector by supporting the development of financial infrastructure, institutions, and products and services; and by promoting inclusive growth. The investment will assist RBL in its efforts to (i) expand its offerings to the low-income population across rural and semi-urban India; and (ii) provide long-term finance to deepen financial service availability to MSMEs and farmers, thus also supporting ADB's country partnership strategy for India, 2013-2017. The project is also aligned with ADB's Gender Equality and Women's Empowerment Operational Plan, 20132020. It is designed to have a gender equity theme and will directly provide and target financial services to women farmers and women MSMEs. The project will target women beneficiaries as borrowers and investors, and will therefore receive direct gender benefits.

Safeguard Categories
Environment	FI
Involuntary Resettlement	FI
Indigenous Peoples	FI

Summary of Environmental and Social Aspects
Environmental Aspects	The project is classified as category FI for impacts on the environment.
Involuntary Resettlement	The project is classified as category FI for impacts on the involuntary resettlement.
Indigenous Peoples	The project is classified as category FI for indigenous peoples.
Stakeholder Communication, Participation, and Consultation	Monitoring of the project will be carried out by ADB. RBL will provide ADB with financial reports at predetermined regular intervals and as requested, including (i) unaudited financial statements on a quarterly basis; (ii) audited financial statements on an annual basis; (iii) compliance certificates for financial covenants; (iv) reporting on the MSME, microfinance, and small farmer loan portfolios; (v) annual reporting on selected development indicators agreed between ADB and RBL; and (vi) annual implementation status of its environmental and social management system (ESMS) reports.

Timetable for assistance design, processing and implementation
Concept Clearance	-
Credit Committee Meeting	-
Approval	09 Dec 2015
Last PDS Update	10 Sep 2021

Project Page	https://www.adb.org//projects/49207-001/main
Request for Information	http://www.adb.org/forms/request-information-form?subject=49207-001
Date Generated	05 June 2023

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