Private sector lender RBL Bank has fully acquired Mumbai-based financial product distribution firm Swadhaar FinServe Pvt Ltd where it had 60.49 percent holding earlier. Swadhaar has now become a fully owned subsidiary of the bank, the bank said in a regulatory filing to stock exchanges. RBL has purchased 35.94 percent from Accion International and 3.58 percent from promoters and others.
Swadhaar is a business correspondence that works exclusively for RBL Bank. In November 2017, the bank had announced the right to raise its stake to 100 percent in a regulatory filing to stock exchanges. RBL’s executive director Rajeev Ahuja and head for retail and priority sector Harjeet Toor were in the board of Swadhaar.
The firm took the decision to become a business correspondent for RBL Bank in 2014 and transferred its microcredit portfolio to the bank. Under this model, Swadhaar holds responsibility for sourcing clients, evaluating creditworthiness and monitoring repayments for RBL, leveraging the bank’s balance sheet and infrastructure. It started operations as a non-banking finance company in 2008 and subsequently converted into an NBFC-MFI.