StanChart To Ramp Up Microfinance Portfolio

Mumbai: Standard Chartered Bank will be raising its microfinance business in India. The bank which has a microfinance portfolio of around Rs 60 crore is planning to increase it to around Rs 500 crore in the next 18 months. The foreign bank''s group Chairman Mervyn Davies had pledged to create a $500 million microfinance fund over the next five years. Around 20 per cent of this fund is expected to flow to India. At present, the bank operates its microfinance business in 10 countries and plans to launch it in around 17 countries by the end of this year. The bank has made a decision to adopt the partnership model to ensure that costs of operations are low in this business. Standard Chartered has partnered with 15 microfinance institutions in India. These MFIs will be used as agents for credit delivery. The bank has issued a medium term note in Dubai, which is expected to close in July. The MTN issue is a basket of microfinance portfolio from India, Bangladesh and Africa.