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Showing posts with label Equitas Small Finance Bank. Show all posts
Showing posts with label Equitas Small Finance Bank. Show all posts

Tuesday, November 1, 2016

Equitas Small Finance Bank commences issuances of RuPay Debit Cards



         Equitas Small Finance Bank become the 99th Direct Live Member on NPCI’s National Financial Switch. Last month, it started to issue RuPay Debit Cards to its SFB Account Holders. Initially, two variants of RuPay Debit Cards (Classic + Platinum) are being offered.

            Equitas YouTube Video 1

            In September 2016, Equitas Small Finance Bank has commenced its banking operations with 3 branches in Chennai.

            Equitas YouTube Video 2

            Equitas Holidings was one of the 10 companies to receive the ‘in-principle’ approval from Reserve Bank of India to set up. The in-principle approval given in September 2015  and the applicants had  18 months to comply with the requirements.

            The companies which received the ‘in-principle’, approval were Au Financiers (India) Ltd., Jaipur, Capital Local Area Bank Ltd., Jalandhar, Disha Microfin Pvt., Ahmedabad and Utkarsh Micro Finance Pvt. Varanasi, Equitas Holdings Pvt., Chennai, ESAF Microfinance and Investments Pvt., Chennai, Janalakshmi Financial Services Pvt., Bengaluru and Ujjivan Financial Services Pvt., Bengaluru. The RBI also granted permission for RGVN (North East) and Microfinance Ltd., Guwahati, and the Navi Mumbai-based Suryoday Micro Finance Pvt.


            Equitas Holdings  received the final approval from Reserve Bank of India, in June 2016.  Based on the final Reserve Bank of India, Equitas  top management  planned the initial roll-out in September or October 2016.

Equitas would  be the first bank after indepedence from Tamil Nadu and first private bank from Chennai.

            In the initial years, Equitas Small Finance Bank would incur an additional expenses of INR100 crores. The additional expenditure is towards onboarding employees and relocation of its branches.

In mid 2016,  Equitas had  around 9,000 employees of which only three are employed to get money, while balance are in lending and collection.

As the new SFB needs to focus on liability, it needs to add another 3,000 people. This alone would cost around Rs 80-90 crore every year.

The second major cost would be increase in rent as Equitas need to relocate around 400 branches.

Of the little over 580 branches of Equitas, currently around 410 will be converted into full-fledged SFB branches, while the balance will be specialised branches, which will focus on lending.

Almost 400 of these branches are located inside the lanes or on the second or third floors of a building, which will NOT work for a bank, as Bank branches  need to be on the ground floor and on the main roads.

Of the total branches around 50% of it are in South, in West around 30% and balance are in North.

The new  SFB will focus on four key strategies including offering existing range of credit products such as micro-finance, small enterprise loans, business banking loans for tiny to small commercial establishments, commercial vehicle finance and affordable housing finance.

Additionally, the SFB would be looking to offer a few cross sell products such as loan against gold, etc.

Equitas  plans to offers multiple channels to clients to access their accounts with the bank including digital channels such as net banking and mobile banking, offer third party products and services such as insurance, pension and 3-in-1 accounts to enhance the value to clients. The company invested around Rs 20-25 crore in IT infrastructure.

To enable physical support to its millions of customers, Equitas plans to have a net work of Business Correspondents (BC) at branch level taking banking services right to the doorstep of its clients.

Equitas hopes to improve its operational efficiency and risk management through technology-enabled operating procedures which would help in reducing cost to borrowers over time.

The Chennai-headquartered Small Finance Bank, in a statement, said by the end of fiscal FY16-17, it plans to have a network of 412 branches spread across 11 states.

Of these 412 branches, Equitas plans to have 50 per cent in South, 30 per cent in West and the remaining 20 per cent in North. About 25 per cent of bank branches will be located in rural, unbanked villages.

Currently, the bank has advances of about Rs. 6,500 crore, of which about 50 per cent is microfinance, about 25 per cent is used commercial vehicle finance and the remaining in micro and small enterprises and affordable housing finance.
           
PN Vasudevan, Managing Director & CEO, Equitas Small Finance Bank Limited, 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 per cent of Indian Households by 2025. “




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