Ratnakar Bank Ltd has closed $54.6 million (INR3.28 billion) in the sale of an undisclosed minority holding to fund its expansion efforts. British investor CDC Group Plc and Asia Capital and Advisors participated in the deal, according to The Economic Times.

Live Mint cited Ratnakar head of strategy Rajeev Ahuja explaining: "This funding provides the bank with a strong financial foundation as it continues to implement this strategy and expand its footprint into India's less developed segments and geographies."

This transaction marks the third time that the bank had raised funding from the same investors in the years 2012 and 2013. As of now, Ratnakar is still an unlisted entity. The valuation of the deal was also not disclosed by the company, the report stated.

Other investors in the deal included previous backers International Finance Corporation and Indian private equity group Gaja Capital. The stakes taken by these firms were also not disclosed. Ratnakar will use the raised capital for its expansion into semi-urban and rural regions, The Economic Times reported.