MUDRA Bank invests Rs 50 crore in securitisation deal with Janalakshmi Financial Services

KOLKATA: MUDRA Bank has invested Rs 50 crore in a securitisation deal with Janalakshmi Financial Services, helping release capital for the micro lender which is busy in small finance bank preparation.

This marks MUDRA’s first-ever participation in a capital market deal as the MSME (micro, small and medium enterprises) loan facilitator looks to explore life beyond refinance given to lenders against their existing loans. MUDRA Bank has been the outcome of government’s initiative to increase lending towards small businesses.

Its chief executive Jiji Mammen told ET that the newly formed refinancing bank was trying out new instruments to help MSMEs access capital market. “This (securitisation) is something which is sophisticated and we would like to facilitate the market grow by investing in such instruments,” Mammen said.

“Structured financing has a greater impact in enabling financial institutions to access funds from capital market at a lesser cost, without a charge on their limited capital. We hope to participate in more such transactions,” he said.