Suryoday SFB Tier II (IFC-41079)

Countries
  • India
Where the impacts of the investment may be experienced.
Specific Location
Maharashtra, Gujrat, Tamil Nadu, Karnataka, Orissa, Madhya Pradesh, Chhattisgarh and Puducherry
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jan 31, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
SURYODAY SMALL FINANCE BANK LIMITED
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jan 17, 2019

Disclosed by Bank Nov 26, 2018


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Project Description

According to the bank website, the proposed project envisages a debt investment in Suryoday Small Finance Bank (“Suryoday” or the “Bank”) headquartered in Navi Mumbai, Maharashtra with a borrower base of more than 850 thousand borrowers and a loan portfolio of approximately INR19.4 billion (US$277 million equivalent) as of June 2018.

IFC stated that "the Project will help in expanding the outreach of access to microfinance to borrowers who have little or no access to formal sources of financing, including borrowers in low income states of India which have amongst the highest population densities and poverty rates in the country; and would help demonstrate the sustainability of lending to the micro-small business enterprises and build investor confidence in alternate means of providing microfinance through various channels.

Investment Description
  • International Finance Corporation (IFC)
Private Actors

According to IFC, Suryoday was founded by Mr. Baskar Babu who is a professional with a substantial experience in banking and financial services in institutions such as Cholamandalam Finance, HDFC Bank and GE Commercial Finance. Other shareholders include specialized microfinance funds such as Lok Capital Group, other domestic and foreign private equity funds and HNI investors, in addition to the HDFC Group through HDFC Holdings Limited and HDFC Standard Life Insurance.

Suryoday is amongst the few SFBs that focus on providing micro loans to women borrowers in urban and semi-urban areas. Its target customers include self-employed women working as vegetable or fruit vendors, small shop owners, sari sellers, tailors, salaried women working as cooks, house maids, small factories and piece rate workers involved in tailoring etc. Suryoday has been proactive in deployment of technology and over the years established itself as a customer centric institution with a commitment to responsible finance.

Contact Information

Suryoday Small Finance Bank
Mr. Bhavin Damania
Chief Financial Officer
9102240435815
1101, Sharda Terrace, Plot No.65, Sector 11, CBD Belapur,Navi Mumbai – 400614
www.suryodaybank.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/