Equitas Small Finance Bank

Last updated

Equitas Small Finance Bank.
Native name
Small bank of Bank india
Company type Public
NSE:  EQUITASBNK
BSE:  543243
ISIN INE063P01018
Industry Small finance bank
Founded2007
HeadquartersPhase-II, 4th Floor, Spencer Plaza, No-769, Anna Salai,
Chennai
,
India
Key people
Arun Ramanathan (Part-time Chairman)
Vasudevan P N (MD & CEO)
Services Banking, financial services
RevenueIncrease2.svg₹3,641 crore (US$440 million) [1]  (FY 2021)
Increase2.svg₹384 crore (US$46 million) [1]  (FY 2021)
Website www.equitasbank.com

Equitas Small Finance Bank (erstwhile Equitas Microfinance Ltd) is a small finance bank founded in 2016 as a microfinance lender. [2] [3] The Bank has its headquarters in Chennai, and is a subsidiary of holding company Equitas Holdings Ltd. [4]

Contents

History

After receiving license from the Reserve Bank of India (RBI) on 30 June 2016, [5] Equitas Small Finance bank began banking on 5 September 2016. [6] With effect from 4 February 2017, Equitas became a scheduled bank. [7] However, the company failed to meet the RBI's mandate of listing within three years of starting operations. A review from the Securities and Exchange Board of India and RBI is awaited. [8]

Operations

The bank planned to build a network of 412 branches located in 11 Indian states by the end of fiscal year 2016-17. [9] However, for rendering technology oriented services, 83% of transactions occurring online as of July 2017. This includes the bank providing an RFID sticker to pay road tolls automatically, with settlements occurring digitally. [10]

On 1 March 2018, the bank was penalized ₹1 million (US$13 thousand) by the Reserve Bank of India for rolling out investment, pension, and insurance services without obtaining prior approval. [11] [12] [13]

The bank became a public company via an initial public offering (IPO) in October 2020. [14]

In 2021, Equitas Small Finance Bank partnered with the neobanking company Niyo to launch a mobile banking platform called NiyoX. [15]

On 23 November 2021, the bank announced its partnership with HDFC Bank, for a co-branded credit card. [16]

In 2021, the boards of both Equitas Small Finance Bank and its holding company, Equitas Holding Company, approved a reverse merger between the two companies. [17] The merger was completed in March 2023. [18]

Philanthropy

Equitas Microfinance Ltd established Equitas Development Initiatives Trust (EDIT) in 2008 to provide social services. [19] In 2018, the bank committed 5% of profits to EDIT. [20]

EDIT established Equitas Gurukul Matriculation Schools in 2010. By 2017, the schools were employing 400 people, and educating 5,700 students, primarily from backgrounds that offered limited opportunities. [19] EDIT also has a programme called Equitas Bird's Nest that seeks to help impoverished pavement dwellers. In March 2018, EDIT celebrated the milestone of improving the quality of life for 1,300 families in Chennai through this programme. [21]

See also

Related Research Articles

<span class="mw-page-title-main">Reserve Bank of India</span> Central Bank of India

The Reserve Bank of India, abbreviated as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. Owned by the Ministry of Finance, Government of India, it is responsible for the control, issue and maintaining supply of the Indian rupee. It also manages the country's main payment systems and works to promote its economic development. Bharatiya Reserve Bank Note Mudran (BRBNM) is a specialised division of RBI through which it prints and mints Indian currency notes (INR) in two of its currency printing presses located in Mysore and Salboni. The RBI, along with the Indian Banks' Association, established the National Payments Corporation of India to promote and regulate the payment and settlement systems in India. Deposit Insurance and Credit Guarantee Corporation was established by RBI as one of its specialized division for the purpose of providing insurance of deposits and guaranteeing of credit facilities to all Indian banks.

<span class="mw-page-title-main">Banking in India</span> Brief account of Indian banking

Modern banking in India originated in the mid of 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.

Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It offers banking products and financial services for corporate and retail customers in the areas of personal finance, investment banking, life insurance, and wealth management. As of December 2023, the bank has 1,869 branches and 3,239 ATMs, including branches in GIFT City and DIFC (Dubai).

Bharat Financial Inclusion Limited or BFIL is a banking & finance company (NBFC), licensed by the Reserve Bank of India. It was founded in 1997 by Vikram Akula, who served as its executive chair until working. The company's mission is to provide financial services to the poor under the premise that providing financial service to poor borrowers helps to alleviate poverty. In 2011, the company operated across 11 Indian states.

Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance business or chit-fund business, but does not include any institution whose principal business is that of agriculture, industrial activity, purchase or sale of any goods or providing any services and sale/purchase/construction of immovable property.

Manappuram Finance Ltd is an Indian non-banking financial company (NBFC) based in Valapad, Thrissur, Kerala. Manappuram has over 4190+ branches across 25 states.

From the 1991 India economic crisis to its status of third largest economy in the world by 2011, India has grown significantly in terms of economic development, so has its banking sector. During this period, recognizing the evolving needs of the sector, the Finance Ministry of the Government of India set up various committees with the task of analyzing India's banking sector and recommending legislation and regulations to make it more effective, competitive and efficient.

<span class="mw-page-title-main">Infrastructure Development Finance Company</span> Indian Financial Services company

Infrastructure Development Finance Company Limited, more commonly known as IDFC, is a development finance institution based in India under the Department of Financial Services, Government of India. It provides finance and advisory services for infrastructure projects, as well as asset management and investment banking.

Bandhan Bank Ltd. is a banking and financial services company, headquartered in Kolkata.

<span class="mw-page-title-main">Payments bank</span> New model of banks initiative by Reserve Bank of India

Payments banks are a new model of banks, conceptualised by the Reserve Bank of India (RBI), which cannot issue credit. These banks can accept a restricted deposit, which is currently limited to ₹200,000 per customer and may be increased further. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks. Payments banks can issue ATM cards or debit cards and provide online or mobile banking. Bharti Airtel set up India's first payments bank, Airtel Payments Bank.

Small finance banks (SFB) are a type of niche banks in India. Banks with a SFB license can provide basic banking service of acceptance of deposits and lending. The aim behind these is to provide financial inclusion to sections of the economy not being served by other banks, such as small business units, small and marginal farmers, micro and small industries and unorganised sector entities.

<span class="mw-page-title-main">ESAF Small Finance Bank</span> Indian small finance bank

ESAF Small Finance Bank is an Indian small finance bank headquartered in Thrissur, Kerala, providing banking services and small loans to the underbanked. Having started its operations as an NGO in 1992 under the name of Evangelical Social Action Forum, ESAF Microfinance was a non-banking finance company and microfinance institution (NBFC-MFI), licensed by the Reserve Bank of India (RBI). It became a small finance bank in March 2017 and started operating in January 2018.

Ujjivan Small Finance Bank Limited is an Indian small finance bank based in Bangalore, which commenced operations on 1 February 2017. Ujjivan Financial Services holds an 80 percent stake in the bank.

<span class="mw-page-title-main">AU Small Finance Bank</span> Indian small finance commercial bank

AU Small Finance Bank Limited is an Indian scheduled commercial small finance bank and India’s largest tech-led small finance bank, based in Jaipur. It was founded as vehicle finance company and NBFC, AU Financiers (India) Ltd in 1996 and converted into a full-fledged small finance bank on 19 April 2017.

Capital Small Finance Bank is an Indian first small finance bank founded in April 2016, with its headquarters in Jalandhar, India.

Satin Creditcare Network Limited is a non-banking finance company (NBFC), licensed by the Reserve Bank of India. It was founded in 1990 by Mr. H P Singh. The company's offers financial requirements for excluded households at the bottom of the pyramid. Satin Creditcare Network Limited is a micro-finance institution (MFI) in the country with presence in 7 states and more than 12,00 villages.

<span class="mw-page-title-main">IDFC First Bank</span> Indian private sector bank

IDFC First Bank is an Indian private sector bank formed by the merger of the banking arm of Infrastructure Development Finance Company and Capital First, an Indian non-bank financial institution.

<span class="mw-page-title-main">VFS Capital</span> Indian non-banking financial company

VFS Capital Limited formerly known as Village Financial Services Ltd (VFS), is headquartered in Kolkata, was incorporated on 28 June 1994, as a private limited company before it got its present name.

<span class="mw-page-title-main">SBM Bank India</span> Commercial bank

SBM Bank India is a subsidiary of the State Bank of Mauritius. It was the first bank to receive a banking license from the India's banking regulator Reserve Bank of India (RBI) to establish a universal banking business in the country as a wholly owned subsidiary. It was incorporated on 1 December 2018 as a private sector bank headquartered in Mumbai. It also operates from New Delhi, Bengaluru, Chennai, Hyderabad, Ahmedabad, and in the rural centers of Ramachandrapuram and Palghar.

References

  1. 1 2 "Statement of Audited Financial Results for the quarter ended and year ended March 31, 2021" (PDF). Equitas Small Finance Bank. Retrieved 22 June 2021.
  2. ↑ "Equitas gets RBI nod to commence Small Finance Bank operations". Zee News. 1 July 2016. Retrieved 24 March 2021.
  3. ↑ "Equitas Small Finance Bank starts operations". @businessline. 6 September 2016. Retrieved 24 March 2021.
  4. ↑ "Equitas Small Finance Bank ltd". Bloomberg. Retrieved 15 March 2017.
  5. ↑ Narasimhan, T. E. (2 July 2016). "Equitas gets final licence for small finance bank". Business Standard India. Chennai. Retrieved 31 March 2018.
  6. ↑ Narasimhan, T. E. (5 September 2016). "Equitas starts Small Finance Bank operations". Business Standard India. Chennai. Retrieved 31 March 2018.
  7. ↑ "Equitas Small Finance Bank now becomes a scheduled bank". India Infoline News Service. 6 February 2017.
  8. ↑ Karthik, Hamsini (5 September 2019). "Equitas Small Finance Bank misses RBI mandate of listing within 3 years". Business Standard India. Retrieved 7 September 2019.
  9. ↑ "Equitas Small Finance Bank starts operations". The Hindu Business Line. Mumbai. 6 September 2016. Retrieved 15 March 2017.
  10. ↑ "Equitas Bank launches FASTag". Dataquest. 18 July 2017. Retrieved 16 March 2018.
  11. ↑ Kattoor, Jose J. (8 March 2018). "Reserve Bank of India imposes monetary penalty on Equitas Small Finance Bank Limited". Reserve Bank of India. Retrieved 26 August 2018.
  12. ↑ Banerjee, Rumu (8 March 2018). "RBI penalised 12 banks for various violations in last 6 years". The Times of India. Retrieved 2 November 2018.
  13. ↑ "RBI imposes Rs 10L fine on Equitas SFB for selling products without approval". The Economic Times. 8 March 2018. Retrieved 2 November 2018.
  14. ↑ "Equitas Small Finance Bank IPO fully subscribed on last day". The Economic Times. Retrieved 22 June 2021.
  15. ↑ "Niyo partners with Equitas SFB to launch NiyoX for millennials". Economic Times. Retrieved 22 June 2021.
  16. ↑ Sarkar, Brinda. "Rajeev Srivastava appointed as CEO of Standard Chartered Securities". The Economic Times.
  17. ↑ Press Trust of India (8 January 2022). "Equitas Holdings to divest stake in ETPL ahead of merger with Equitas SFB". Business Standard India. Retrieved 24 March 2022.
  18. ↑ "Equitas SFB slips 13% as new shares list post merger with Equitas Holdings". Business Standard. Retrieved 8 August 2023.
  19. 1 2 Thangavelu, Dharani (6 October 2017). "Strong people policies at every stage set EDIT schools apart". LiveMint. Retrieved 17 March 2018.
  20. ↑ "Equitas Group commits contributing 5% of its annual profits to its Trust". India Corporate Social Responsibility Network. 2 March 2018. Retrieved 17 March 2018.
  21. ↑ "Equitas Small Finance Bank rehabilitates 1300 pavement dwellers in Chennai". India Corporate Social Responsibility Network. 2 March 2018. Retrieved 17 March 2018.


This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.