RBL Bank acquires around 10 per cent stake in Utkarsh Micro Finance

MUMBAI: RBL Bank has acquired a 9.99% stake in Utkarsh Micro Finance in what is a strategic move to reach out to the unbanked and underbanked segments of society. The Bank is also entering into a MoU to extend its product portfolio to Utkarsh customers.

RBL Bank said that it has got all the necessary regulatory approvals. UMFL has received an in-principle approval from the RBI for setting up a small finance bank and is expected to commence operations soon.

“This is a strategic partnership rather than a mere acquisition of a minority stake in Utkarsh, one of India’s finest and well-governed micro finance institutions. It will help us extend our distribution footprint and strengthen our financial inclusion initiatives across the rural hinterland. We will strive to explore joint business opportunities that are beneficial to Utkarsh and RBL Bank and to our customers,” said Vishwavir Ahuja, CEO, RBL Bank.