BSS Micro Finance calls off deal talks with Essel Finance

MUMBAI: BSS Microfinance has terminated talks with Essel Finance for a possible sale.

Essel Finance was in talks to acquire BSS Microfinance Pvt Ltd. The Bangalore based MFI has asset size of Rs 400 crore. This could have paved the way for the non-banking finance company Essel Finance to bid for a banking licence as the Reserve Bank of India is moving towards on-tap licensing.

"Any talks BSS micro finance may have had with Essel group for possible investment have been terminated," said a BSS Micro Finance spokesperson in a release.

BSS Microfinance, founded by Bengaluru born gastroenterologist Ramesh Bellamkonda, is a non-deposit taking non-banking financial company registered with the RBI which gives loans of less than Rs 25 lakh each to borrowers. It has a net worth of Rs 66 crore.