IDFC First Bank likely to acquire Vaya MFI’s assets for about 1,000 crore

IDFC First Bank is nearing an agreement to buy Vaya Finserv’s entire microfinance loan portfolio for approximately Rs 1,000 crore. “The portfolio buyout is intended to meet IDFC First Bank’s priority sector loan (PSL) requirements. “Vaya would continue to exist after the buyout,” said a source familiar with the situation. Furthermore, it is believed that some MFI employees will be absorbed by the bank, particularly in regions where the bank does not have a microfinance presence.

Vaya Finserv, founded in 2014 by Vikram Akula, a former SKS Microfinance founder, began as a banking correspondent (BC) to many banks, including IDFC First Bank, and now has operations in seven states. This adds to the bank’s existing MFI business, which it entered in 2017 with the acquisition of Tamil Nadu-based Grama Vidiyal MFI. Sources say Vaya has been looking for equity funding since 2018.

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