ESAF Microfinance expects to receive final approval from theReserve Bank of India for setting up a small finance bank, the Press Trust ofIndia reported July 18, citing a company executive.
A.G. Varughese, ESAF Microfinance's executive vicepresident, said the company is expecting the central bank's approval for afinal license soon. After it receives the final go-ahead, the company willbegin operations in two months.
ESAF Microfinance was one of 10 companies that in-principle approvalin September 2015 to set up small finance banks. So far, only Capital SmallFinance Bank has commenced operations.
Varughese said the company raised 1.1 billion rupees ofcapital and has an asset base of 22 billion rupees. The company also plans tostart with 10 branches and run a network of 150 branches after completing oneyear of operation, the executive noted.
In addition to final approval, the company has submitted K.Paul Thomas' name as managing director and CEO of the bank to the central bank.Thomas serves as chairman of ESAF Microfinance.