Erstwhile Chennai-based MFI Equitas opened the Small Finance Bank operations with 3 branches in Chennai on Monday, Sept.5, 2016, with a target to open 412 branches in 11 states by the end of fiscal 2016-17.
Of these 412 branches, Equitas plans to have more than 200 in the South, 100 in the Western states and the remaining 100 in the North. Initially, about 25% of these branches will be opened in rural areas, it said.
Currently, the bank has given advances of about Rs 6,500 crore, half of them in microfinance, about one-fourth in commercial vehicle finance and the rest in small and micro enterprises and in affordable housing finance.
PN Vasudevan, Managing Director & CEO of Equitas Small Finance Bank said, “It is our endeavour to bring a wave of freshness into banking through our focus on making normal banking transaction ‘Fun’ for the customers and through spreading fun and joy, we hope to impact about 5% of Indian Households by 2025."
Equitas plans is also envisaging to have a net work of Business Correspondents (BC) at branch level.
After successfully raising IPO early this year, the Madras High Court has approved the amalgamation of Equitas Micro Finance Limited (EMFL) and Equitas Housing Finance Limited (EHFL), both subsidiaries of Equitas Holdings, with Equitas Finance Limited (EFL) in June this year.
Following the amalgamation, the new entity was named Equitas Small Finance Bank and it began its operation this week. Next, Ujjivan is waiting in the wings to open its banking operations while Bandham has already celebrated one year of its successful foray into universal banking operations.