Equitas gets final RBI nod to set up small finance bank

Equitas Holdings Ltd said it has received final licence from Reserve Bank to launch a Small Finance Bank (SFB) and will commence operations in few months with a network of around 400 branches.

"The SFB, to be named Equitas Small Finance Bank Ltd (Equitas Bank), will start banking operations after receiving few other approvals from various departments of RBI and other agencies," the company said.

The company hopes to start operations in the next few months with a network of around 400 branches, which would be established through the year.

"It is indeed a proud moment for everyone at Equitas to be a first Private Bank from Tamil Nadu and the city of Chennai," said P N Vasudevan, managing director, Equitas Holdings.

"With our ability to service the informal economy through our reach and efficient process and system, we plan to cater all sections of society," he added.

The company added that in June, the Madras High Court had approved the amalgamation of Equitas Micro Finance Ltd (EMFL) and Equitas Housing Finance Ltd (EHFL) with Equitas Finance Ltd (EFL).

With amalgamation coming into effect, Equitas Finance Ltd will be named as Equitas Small Finance Bank which will carry on the business of banking, said the release.

Chennai-based Equitas Holdings lends to individuals, micro and small enterprises that are underserved by formal financing channels.

The stock of the company closed 3.6% higher at Rs 183.95 on BSE.