Equitas Holdings Ltd. is gearing up to launch its banking operations in the last quarter of this calendar year.
Indicating this, P. N. Vasudevan, Managing Director, Equitas Holdings, told The Hindu that the banking operations could commence latest by October.
The company already been given an in-principle approval by the Reserve Bank of India to set up a small finance bank, he said. It was expecting the RBI to give its final nod soon, he added. Till it got a final approval, its three operating subsidiaries (micro finance, vehicle finance and housing finance), would function independently. They would get merged into a single entity a day prior to commencement of banking operations, he added.
Equitas Holdings, he said, was expecting to kick-start its banking operations with savings deposits of Rs.250 crore.
“As a non-banking micro-finance firm, we were permitted to provide loans. However, we were restricted from collecting deposits. For long, there has been a demand from women’s self- help groups to accept deposits. In line with our new operations, we have started motivating them to save money by giving them a piggy bank,” Mr. Vasudevan said.
“In the last three to four months, Equitas has distributed 25 lakh piggy banks ( hundis ). Each piggy bank can hold up to Rs.3,000. On a rough estimate, the company expects everyone to save at least Rs.1,000 each which could then be ploughed into small finance bank by way of savings deposit,” he said. He did not expect all of them to deposit their money on the first day itself. Nevertheless, he was confident that the money would come into the system gradually. ``We have planned methodically to imbibe the habit of savings,’’ he added.
Equitas planned to have a total of 400 branches by the year-end, he said. Out of which, 61 would be in and around Chennai, Kancheepuram and Puducherry. About 50 per cent of branches would be located in the South, 30 per cent in the West and the reminder in the North..
Equitas, he said, would be pumping in around Rs.50 crore in technology upgradation and another Rs.30 crore in building necessary infrastructure. It was also planning to issue debit cards in association with Rupay, he said.
“We will cater to mass and affluent class. Besides, we will also appoint banking correspondents who will be able to provide easy, convenient and comfortable access to clients to carry out small value transactions be it savings accounts, remittances or withdrawals,” Mr. Vasudevan said.
By the year-end, Equitas proposes to have a total of 400 branches of which 61 will be in and around Chennai, Kancheepuram and Puducherry. About 50 per cent of branches will be located in the South, 30 per cent in the West and 20 per cent in the North. The first phase calls for opening of 50 branches.
Currently, Equitas has 9,000 employees on its payroll and steps are on to recruit 3,000 more to take care of the liability side.
