Becomes First Private Bank from Chennai
Chennai, July 1, 2016: Equitas Holdings Limited (Equitas) has received final license from Reserve Bank of India (RBI) to commence operations as Small Finance Bank (SFB).
The SFB, to be named “Equitas Small Finance Bank Limited” (Equitas Bank), will start banking operations after receiving few other approvals from various departments of RBI and other agencies.
Commenting on the development, P. N. Vasudevan, Managing Director, Equitas Holdings Limited said, “It is indeed a proud moment for everyone at Equitas to be a first Private Bank from Tamil Nadu and the city of Chennai. This further takes us closer to our mission of empowering India through financial inclusion.”
“With our ability to service the informal economy through our reach and efficient process and system, we plan to cater all sections of society. We hope to start operations in next few months with a network of around 400 branches which would be established through the year. Through various innovations, we aim to ease the banking experience of our customers,” he further added.
In June 2016, the Madras High Court had approved the amalgamation of Equitas Micro Finance Limited (EMFL) and Equitas Housing Finance Limited (EHFL) with Equitas Finance Limited (EFL). On amalgamation coming into effect, Equitas Finance Limited will be named as Equitas Small Finance Bank which will carry on the business of banking.
About Equitas Holdings Ltd. (http://www.equitas.in/)
Equitas Holdings Limited is a diversified financial services provider focused on individuals and micro and small enterprises (MSEs) that are underserved by formal financing channels. Its focus customer segment includes low income groups and economically weaker individuals operating small businesses, as well as MSEs with limited access to formal financing channels on account of their informal, variable and cash-based income profile. These customers require various financial products including small, short-term business loans as well as relatively large, longer tenor enterprise and home loans. It offers a range of financial products and services that address the specific requirements of these customer segments that take into account their income profile, nature of business and kind of security available. Its microfinance business is conducted through the wholly-owned subsidiary EMFL. As of March 31, 2015, EMFL was the fifth largest microfinance company in India in terms of gross loan portfolio (Source: CRISIL MF Opinion). Its used commercial vehicle finance customers are typically first-time formal financial channel borrowers purchasing commercial vehicles. Its customers also include small fleet operators. It is amongst a few NBFCs in India operating in the used commercial vehicle finance business. It provides asset backed financing primarily focused on self-employed individuals operating micro enterprises and small enterprises, typically in urban and semi-urban locations. It focuses on providing micro-housing and affordable-housing loans to self employed individuals who have limited access to loans from banks and larger housing finance companies.