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

Nonsovereign Project | 49207-001

Project Details

  • Project Officer
    Doukidis, Doukas
    Private Sector Operations Department
    Request for information
  • Country/Economy
    India
  • Sector
    • Finance

Related Projects

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

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Related Publications

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