ESAF Small Finance Bank plans to mop-up 200-crore capital
ESAF Small Finance Bank a recent entrant in the small finance bank space, planning to raise 200 crore via Tier-II bonds, Managing Director, Founder and CEO K Paul Thomas said.
Presently, this small finance bank which launched on March 17 has a net worth of about 284 crore.
Thomas told to source that they wanted to raise Tier-II capital to fund business growth and also trying to manage capital adequacy. They said there is headroom for us on the Tier-II front. It will be an institutional placement he said.
He also added that ESAF Small Finance Bank is also eyeing for the total business mix of about 10,000 crore this fiscal.
Plans are happening to open by the end of this March 2018 as many as 150 retail branches.
The new branches of the company will be going to spread across the country, including the North-East India.
He explained that form the launch of Bank in March, the bank has opened 15 retail branches (full-service) and five more branches will be opened next week, including three in un-banked rural locations in Tamil Nadu.
Including Delhi and Mumbai retail branches are also likely to be opened.
All the microfinance branches that are existing now been converted into ultra small branches.
By the end of this fiscal the number of such branches are planned to be increased to 360.
10 applicants who had received RBI’s in-principle approval in 2015 September, as many as seven have obtained final licenses and commenced operations.
Small finance banks are permissible to accept the deposits from customers.
The small finance banks are allowed to lend money to people against payments banks.
The CEO said that ESAF is viewing at listing on the bourses in 2020. If everything goes well, they must be in a position to go for listing by 2020. By then, they must be capable to reach 500 crore net owned funds mark.