Nabard to set up subsidiary for micro-credit
By Our Banking Bureau | 04 Jul 2007
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Hyderabad: The National Bank for Agriculture and Rural Development (Nabard) is launching a non-banking financial company (NBFC) in the micro credit space.
The new subsidiary would be called Nabard Financial Services (Nabfins), and would have an authorised capital of Rs 100 crore and an issued capital of Rs 20 crore.
While Nabard will subscribe to the extent of 51 per cent equity, the remaining is expected to be held by banks, and state governments among others.
Officials said the main aim behind the initiative was to create an institution as a model to be emulated by other players in this area.
Headquartered in Bangalore, the company will start its operations initially in Karnataka on a pilot basis and later extend to Andhra Pradesh and Tamil Nadu.
