HDFC Bank Raises $500 Million to support Underserved Women Borrowers

HDFC Bank announced on Friday that it has secured a loan of USD 500 million from the International Finance Corporation (IFC). The purpose of this loan is to provide funding to underserved women borrowers.

According to an official statement, HDFC Bank, the largest private sector lender in India, plans to utilize this funding to support income generation, promote financial inclusion, and contribute to socio-economic growth. The bank intends to offer microloans to self-help groups and joint liability groups of women who are part of the Sustainable Livelihoods Initiative (SLI) implemented by HDFC Bank.

Arup Rakshit, HDFC Bank’s group head for Treasury, explained that this credit facility is of a longer duration and will assist the bank in its efforts to empower women. The statement further highlighted that although non-banking entities currently have a larger presence and serve two-thirds of the microfinance market, banks like HDFC Bank can leverage their extensive reach and lower funding costs to provide microloans to women.

Imad Fakhoury, the regional director for South Asia at IFC, emphasized the importance of access to financial services in empowering women and strengthening the economy.

The statement also mentioned that over the past two decades, IFC has invested in 650 microfinance projects, totaling USD 6.2 billion.