Small Finance Bank RGVN (IFC-39454)

Countries
  • India
Geographic location where the impacts of the investment may be experienced.
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
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 22, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
RGVN (North East) Microfinance Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • 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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 15.08 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2018

Disclosed by Bank Mar 29, 2017

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed project envisages a debt investment in RGVN (NE) Microfinance Limited (“RGVN” or the “Company”) which is a MFI headquartered in Guwahati, Assam. RGVN has an asset under management (“AUM”) of INR6.1bn (US$89mn) across 6 north-eastern states and West Bengal has 133 branches and an outreach of 300,000 women clients. RGVN is focused mainly on the north eastern region of India.

RGVN is one of the 10 recipients of the Small Finance Bank License (“SFB”) awarded by the Reserve Bank of India in mid-September 2015.The proposed investment would provide long term liquidity support to RGVN while it starts building its retail savings base post transformation and would help it to continue its efforts towards financial inclusion. The proceeds of the loan would be utilized to extend microfinance and microenterprise loans in the northeastern states of India.

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Microfinance was initiated in Northeast India through Rashtriya GraminVikas Nidhi – Credit & Savings Programme (RGVN-CSP) with revolving fund assistance from SIDBI in 1995 and RGVN (NE) MFI was incorporated as a public limited company in 2008, registering as a non-banking finance company with the Reserve Bank of India in 2010.

Currently the largest shareholder is Dia Vikas Capital (19.36%), the Indian arm of an Australian impact investing firm, followed by NMI (15.59%), a Norwegian microfinance fund and Oiko Credit (12.89%), a Dutch investment firm. The Company has recently raised fresh capital from new investors which include SIDBI Trustee Company Ltd (14.40%), RNT Associates Pvt Ltd (10.2%), Ratan Tata’s investment and Pi Ventures LLC (7.20%) ahead of its transformation into a SFB. Other investors include SIDBI (8.4%), NEDFi (5.04%) and ESOP Trust (1.68%).

IFC proposes to invest up to US$20 million (approximately INR 1,300 million equivalents) in RGVN in form of a senior debt investment.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

RGVN (NE) Microfinance Limited is an MFI headquartered in Guwahati, Assam. RGVN has an asset under management (“AUM”) of INR6.1bn (US$89mn) across 6 north-eastern states and West Bengal has 133 branches and an outreach of 300,000 women clients. RGVN is focused mainly on the north eastern region of India.

 RGVN is one of the 10 recipients of the Small Finance Bank License (“SFB”) awarded by the Reserve Bank of India in mid-September 2015.The proposed investment would provide long term liquidity support to RGVN while it starts building its retail savings base post transformation and would help it to continue its efforts towards financial inclusion. The proceeds of the loan would be utilized to extend microfinance and microenterprise loans in the northeastern states of India.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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/

How it works

How it works