ESAF Small Finance Bank plans to raise Rs 350 cr this fiscal
23/04/2018
Kochi: ESAF Small Finance Bank, focused on small ticket loans, plans to raise Rs 350 crore equity capital this fiscal from investors to fund expansion. As part of the expansion, the bank also plan to add about 200 branches to its network in the current fiscal. "We are planning to raise between Rs 300 crore and Rs 350 crore from investors during this financial year to fund business growth," ESAF Small Finance Bank managing director and CEO K Paul Thomas told PTI.
The bank has already appointed investor banker for the fund-raising, he said. The fund-raising will serve the twin purpose of providing growth capital and meeting regulatory requirements set by the RBI for the small finance bank, he said.
Besides, this will double the net worth of the bank which is Rs 325 crore.
ESAF Small Finance Bank was one among the 10 non-banking finance companies to receive in-principle' approval from Reserve Bank of India to start banking operations in 2016. With regard to network expansion, Thomas said, currently the bank has 401 branches across 11 states, which will go up to 601 by March 2019.
The bank is looking at UP, Odisha and North East states to expand its presence. With a client base of 23 lakh, the bank has mobilised Rs 2,500 crore and Rs 4,100 crore loans and thus generating a total business of Rs 6,600 crore within one year of operation. The bank currently focused on micro-finance activities, retail loans and retail deposits but plans to diversify in others products including gold loan and third party products.
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