The Chennai-based Equitas Microfinance is set to raise Rs 50 crore shortly through a

RELATED ARTICLES Bill seeking interest rate cap on MF lending introduced in Lok Sabha SBI rallies again as analysts upgrade Central Bank says it needs over Rs 14,000 cr for Basel III Union Bank Q4 net up 29.4% to Rs 773.19 cr Banks may need up to $50b extra equity: Fitch

securitisation transaction in which two banks and a mutual fund are involved. This would be the first time in India a mutual fund is participating in a securitisation transaction in the micro finance industry.

“Two banks and a mutual fund are involved in the process,” a person familiar with the deal told Financial Chronicle.

“We have been trying to raise funds from sources other than banks, including mutual funds. But nothing is in the pipeline now,” the managing director of Equitas PN Vasudevan said.

For the first full year ended March 2009, Equitas had extended microcredit to 3.40 lakh clients by disbursing loans for Rs 288 crore.