Capital Trust Ltd, a listed NBFC having its base in Delhi, has announced to enter the microfinance business. Capital Trust launched its microfinance venture in February 2010.

The company has revealed in a filing with the BSE that it has borrowed necessary funds from Friends of Women's World Banking (FWWB) and IFMR Capital Finance Pvt Ltd, for financing its microfinance activities. For this the company has altered one of its clause to be able to undertake the business of microfinance. The company intends to focus on the rural markets in UP, Rajasthan and Madhya Pradesh and Chattisgarh. It started microfinance operations in May 2008 and was assisted by Intellecash to kick-start its operations.

The company’s stock witnessed a upswing on the BSE after announcing its microfinance venture. Against a 52-week low of Rs 5.82 on 28 April 2009, the stock today is ruling at a 52-week high of Rs 44.35 on 10 March 2010.

The company has been earlier engaged in providing two-wheeler auto loans for Kinetic in North India.