Fincare Small Finance Bank (Fincare SFB) has drawn up aggressive plans to increase its business by opening 210 banking outlets before July 2018, a top official said.
“Currently, we are operating in seven States with 290 banking outlets of which 27 are full service branches,” said Rajeev Yadav, CEO, Fincare SFB. “By the end of first year of operation (July 2018), we will have 500 banking outlets.” As of January 2018, Fincare SFB had a loan book of ₹1,800 crore and deposits of ₹600 crore. By the end of the current fiscal, it expects the loan book size to be ₹2,500 crore.
Bank’s vision
‘In the next three years, our vision is to serve four million customers from the existing one million, raise our asset base from ₹2,500 crore to ₹10,000 crore and deposit base from ₹600 crore to ₹8,600 crore.”
Mr. Yadav expected 3Ds — digitalisation, doorstep delivery and higher deposit rates — to help achieve the vision. About 160 banking correspondents (BCs) would soon be appointed for expanding banking outlets.
“This banking sector is under-penetrated. Every year, we need to grow by 50-60% to achieve our vision. In the last three years, prior to demonentisation, we were posting compounded annual growth rate of 78% and last year, we grew by 40% and hence it is achievable.”
According to Mr. Yadav, Fincare SFB is present in 7 States, mostly in West and South. The Southern States account for about 60% of business of which 30% come from Tamil Nadu.
On Wednesday, Mr. Yadav unveiled 101, a digital savings account for millennials in metropolitan and urban markets. It allows customers to open a savings bank account online in less than five minutes using Aadhaar or PAN. Customers have the flexibility to choose between zero balance account and priority account with a minimum balance of ₹25,000.
