Bengaluru-based Janalakshmi Financial Services Ltd., (JFS) has received the final licence from Reserve Bank to set up Small Finance Bank.
It will commence operations in the second quarter of the current financial year, said, V.S. Radhakrishnan, managing director and chief executive officer, Janalakshmi Financial Services.
JFS plans to set up 300 bank branches during the year covering the major locations in India, says a company release.
The licence to operate ‘Small Finance Bank’ will enable over five million existing customers to access financial services beyond the scope of micro finance. This is aimed at addressing financial inclusion and to empower the unbanked segments of the society with several financial tools such as savings account, cashless transactions and so on, says Mr. Radhakrishnan.
Small Finance Bank will enable existing customers to open a savings account or a current account. They will be able to borrow different types of loans and avail benefits from cash deposit schemes and so on. Besides availing micro loans, they can also seek loans for their businesses or Small Medium Enterprise, towards farming and for unorganised sector entities, the release said.
According to MicroFinance Institutions Network (Mfin) micrometer for December 31, 2016, JFS topped the list with a group loan portfolio of ₹12,416 crore, marking an increase of 53%. It was ranked third in loan disbursals at ₹1,571 crore.