Abler Nordic exits NESFB after a decade of impact
Abler Nordic has exited its investment in North East Small Finance Bank (NESFB), a pioneering institution that played a key role in advancing financial inclusion in northeast India.
Our partnership began in 2014 with an equity investment in RGVN through NMI Fund III, aimed at expanding financial services in one of India’s most underserved and geographically challenging regions. The Northeastern states—home to over 45 million people across diverse ethnic communities—have historically faced limited access to formal financial services due to their geographic terrain, diversity and lack of infrastructure.
In 2015, RGVN became one of only ten institutions in India—and the only one in northeast India—to receive a Small Finance Bank (SFB) license from the Reserve Bank of India. This milestone paved the way for the launch of NESFB in 2017, expanding its services to include savings accounts, insurance, and SME loans — all essential products for boosting financial inclusion in the region.
To support the transition and growth of NESFB, Abler Nordic made additional investment in 2017. At its peak, NESFB served over 500,000 borrowers across all the states of Northeast India and West Bengal through its network of over 200 branches and had garnered deposits of over USD 200 million.
NESFB’s doorstep banking model has been pivotal in reaching remote communities, bringing financial services directly to customers without disrupting their livelihoods, with majority of its clients being women in rural areas with support focused on income-generating activities.
Through Abler Nordic’s Norad-funded Technical Assistance facility, we supported NESFB in developing client-centric services, including SME lending to help microfinance clients progress to more advanced financial products as their businesses grow. We also implemented vocational training in IT skills to improve efficiency, and helped establish the company’s risk management function.
NESFB’s social mission has consistently gone beyond credit provision, offering loans for clean water and sanitation, financial literacy programs, vocational training, and health camps—all contributing to improved quality of life for its clients. A 2023 customer survey of 300 NESFB customers conducted through the 60 Decibels Microfinance Index found that 69% of customers had no prior access to financial services, while 85% reported increased business income and 83% saw improvements in quality of life.
NESFB’s recent merger with Slice, India’s leading consumer payments and lending company, combines digital innovation with grassroots banking to expand financial services and enhance customer experience—marking an exciting new chapter for the bank and its customers.
“It has been incredibly rewarding to be part of NESFB’s transformation from a microfinance institution to a small finance bank. This shift has brought essential financial services to low-income people in northeast India who were previously excluded from the formal banking system and has made a tangible difference in people’s lives. We are proud to have supported their journey and wish the team every success as they continue to expand access to vital financial services,” said Smriti Chandra, Regional Director, Asia, Abler Nordic
