Sidbi invest Rs 125 crore debt in Ujjivan Financial Services

KOLKATA: Small Industries Development Bank of India or Sidbi has invested Rs 125 crore debt capital in Ujjivan Financial Services, the country’s fourth largest micro lender.

Sidbi’s investment is a recognition of microfinance sector’s contribution to the financial inclusion space by creating income generating opportunities for urban and rural poor. The investment includes Rs 50 crore of subordinated debt.

“The transaction has opened the doors of Sub Debt transactions with other MFI’s in future by SIDBI,” Ujjivan managing director Samit Ghosh said.

Ujjivan is a Bangalore-based company which has served over 1.5 million urban, semi-urban & rural poor women in 24 states across India. Its outstanding loan portfolio was Rs 1600 crore as on March 30, this year.

Sidbi’s deputy managing director NK Maini said the sector is on a robust footing and Sidbi has been able to foster a culture of responsible lending in the sector, keeping in view the profile of the clients.