PNB-FIMBank JV plans Rs 5 bn equity infusion

KOLKATA, INDIA: India Factoring and Financial Solutions, a joint venture between Punjab National Bank (PNB) and Malta-based FIMBank, is planning to receive Rs 5 billion equity infusion from its promoters by March 2014.

"We have just received a Rs 50 crore capital infusion and estimations say we would require around Rs 500 crore by March 2014," CEO Sudeb Sarbadhikary told reporters here.

The company, which has already become a member of Brussels-based International Factors Group, is expecting a Rs 0.5 billion infusion in the next three to four months.

The Mumbai-based company's total outstanding assets currently stood at Rs 6.5 billion.

Major shareholders in the firm include FIMBank (49 per cent), PNB (30 per cent) and Banca IFIS (10 per cent).

"All the shareholders have committed capital infusion of Rs 5 billion at different levels, according to the ratio of stake in the company," Sarbadhikary said.

The company currently has offices in Delhi, Bangalore, Kolkata, Chennai, Hyderabad and Ahmedabad. Its clientele includes small and medium enterprises (SMEs).