Jana Small Finance Bank, which converted from a microfinance company to a small finance bank (SFB), has started commercial operations in India.
Earlier known as Janalakshmi Financial Services, the lender started operating nearly three years after it received in-principle approval from Reserve Bank of India, the country’s central bank.
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Following the launch, the bank will utilise its 157 branches located across 19 states, reported The Hindu.
Additionally, Jana Small Finance Bank has 402 micro-finance branches across the country.
Jana Small Finance Bank MD and CEO Ajay Kanwal was quoted by the publication as saying: “The transition from a micro-finance company to a bank is set to enable more than 45 lakh (4.5 million) existing loan customers under MFI to come into the banking ecosystem by the end of 2018.”
According to Livemint.com, the bank is planning to diversify its loan book to include 50% individual loan business, 20% agriculture loans and 30% small and medium enterprise loans over the next three years.
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By GlobalDataIt also intends to get listed by March 2021.
The SFBs generally cater to the rural and semi-urban regions to increase financial inclusion in India. They can offer all basic banking services including deposits and lending at a smaller scale.
