Financial services firm Religare, which plans to apply for a new banking licence, may receive equity contribution from the International Finance Corporation (IFC), an arm of the World Bank.
Reports suggest that IFC is willing to invest in ReligareÂ’s proposed banking entity. IFC is an arm of the World Bank which invests and lends to the private sector.
IFC has invested $75 million (around Rs 405 crore) in Religare through compulsorily convertible debentures. This transaction has been completed. Once all the debentures are fully converted into equity, IFC will have 7.9 per cent equity making it the single largest institutional investor in Religare. This is the largest investment by IFC in financial sector in entire South Asia.
However, sources from Religare Enterprises said any decision will be taken later. Religare has been identified by IFC as ‘Partner in Development’ to work collaboratively towards co-developing relevant financial products and services for individuals and SMEs in India.
IFC intends to invest approximately $1 billion in India during year 2012-13 starting (July-June). It has already invested nearly $400 million. Apart from Religare, it has invested in Inox and Power Grid.
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