Project Name Equity Investment and Loan for RBL Bank for Supporting Financial Inclusion Project
Project Number 49207-002
Country India
Location Nation-wide
Approval Number 7468
Type of ADB Assistance / Amount
7468 Equity USD 51.00 million Proposed
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Finance - Finance sector development

Gender Equity and Mainstreaming Gender equity
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Mosnier, Zsuzsanna
Project Sponsor(s)
Description Senior loan of US$100 million to Ratnakar Bank (_RBL or the Bank_) to support its transformation from a regional to pan-Indian bank and scale up its core businesses focused on financial inclusion through supporting MFIs and MSMEs, primarily engaged in agribusiness. Despite India''s impressive progress in poverty reduction over the past decades, poverty incidence fell from 66% (1977) to 33% (2009) there remain 400 million poor of which more than live in rural India. It is estimated that 60% of population in rural areas is unbanked which provides a significant scope for mobilizing deposits and offering other banking services, which in turn could be used for offering credit facilities to good customers increasing access to finance in rural areas. In addition, improving agricultural productivity is essential as half the Indian population draws their income from rural activity. More importantly population growth, increasing urbanization, water scarcity and pressure on agricultural resources generate large demand for private investment in the farming and agribusiness value chains. The growing demand for food India's urban population is 400 million (2012) and growing by 10 million every year and an increasing middle income population - provide compelling market opportunities for agriculture that requires massive capital resources by the private sector. This trend provides an opportunity for realizing productivity improvements throughout the agriculture value chains.
Objectives and Scope
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, 2013 2020. 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
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance -
Due Diligence
Credit Committee Meeting -
Approval -
Last PDS Update 11 Apr 2018

This page was generated from on 09 May 2021