DCB Bank Limited announced that it has acquired an equity stake of 5.81 per cent for Rs.9.99 crore in its long standing business partner Annapurna Microfinance Private Limited.
Annapurna is regarded as a growing and successful microfinance institution focused primarily in rural locations in Odisha, Chhattisgarh and Madhya Pradesh. Similarly, DCB Bank has 14 branches in Odisha, six branches in Chhattisgarh and 14 branches in Madhya Pradesh.
The announcement regarding the equity deal was made jointly by DCB Bank and Annapurna Microfinance, a bank statement said.
Murali M. Natrajan, MD and CEO of DCB Bank, said Annapurna and DCB Bank had a long and fruitful relationship since the microfinance institution's inception. "The initiative of acquiring a strategic equity stake in Annapurna further strengthens our business partnership. DCB Bank has a meaningful presence in microfinance segment, which helps to achieve its financial inclusion goals," he said.
Gobinda Pattnaik, Managing Director of Annapurna Microfinance, said "Our long standing business relationship with one of our most valuable banking partner is taking a new shape by way of us becoming equity partners. This capital infusion is a mandate for growth."
"It will help in striving forward to achieve our goal of serving the financially undeserved," he said.