Kochi: The Thrissur-based ESAF Microfinance has received the final approval from the Reserve Bank of India to launch the Small Finance Bank (SFB). It is expected to start operations by the first quarter of January. The final licence was given by the RBI on Friday. ESAF will be the first bank to be given a banking licence in Kerala since independence, said Mr Paul Thomas, Chairman and Managing Director of ESAF Microfinance. The decision will provide ESAF the confidence to move deeper and wider to serve people at the bottom of the pyramid, he said.
He added that through outstanding service and state-of-the-art the technology, ESAF can serve them better. The new bank will face increase in expenditure due to infrastructure development and HR requirements. In course of time, the cost of funds will come down and the benefits can be passed over to the end customers, added Mr Paul Thomas. Currently, ESAF Microfinance has around 3,000 employees and by March 2017, it will be increased to 3,500.
The bank will have presence in urban, semi- urban and rural areas. Initially, it will start operations in Kerala and Tamil Nadu and gradually it will be expanded to other parts of India, a release said. ESAF has plans to give special focus to the north-eastern parts of India. At present, the organisation has presence in 11 states in India. The company has 1.2 million clients at present and has plans to reach 3 million households by 2020.
