Britain’s development finance institution CDC Group has invested $28 million in RBL Bank (erstwhile Ratnakar Bank) for an equity stake of 4.8%. The investment will support the bank’s expansion into new regions of India. This is CDC’s first direct equity investment in a bank in India. CDC’s investment will provide stable support and capital to the bank as it continues to implement this strategy and expand into states such as Rajasthan, Madhya Pradesh and West Bengal where the penetration of financial services is low. Over the next five years, the bank plans to increase its client base among financially excluded groups to 1.3 million accounts. The potential impact of Ratnakar Bank’s growth is significant, Holger Rothenbusch, CDC’s managing director, debt and financial institutions, said in a statement.
