Centrum Group has agreed to acquire South African lender FirstRand Bank’s micro finance business in India. The financial details of the agreement were not disclosed.
FirstRand Bank India’s micro finance business serves more than 70,000 customers across India with an average ticket value of INR20,000 ($309). It also employs more than 300 people.
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Commenting on the acuisition, Centrum Group executive chairman Jaspal Bindra said: “The acquisition of FirstRand Bank India’s microfinance business is a strategic step in our goal of providing finance to the urban poor and underserved sections of the society.”
Centrum also announced that it has received approval from Reserve Bank of India (RBI) to commence lending operations in the country.
Centrum Microcredit Private Limited, a step-down subsidiary of Centrum Capital, will act as the micro lending arm of Centrum. It will offer loans to un-served and under-served small scale businesses in semi-urban areas.
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