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Equitas Small Finance Bank

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]

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$ 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

External links

References

  1. Statement of Audited Financial Results for the quarter ended and year ended March 31, 2021 Equitas Small Finance Bank, retrieved 22 June 2021^
  2. Equitas gets RBI nod to commence Small Finance Bank operations Zee News, 2016-07-01, retrieved 2021-03-24^
  3. Equitas Small Finance Bank starts operations @businessline, 6 September 2016, retrieved 2021-03-24^
  4. Equitas Small Finance Bank ltd Bloomberg, retrieved 15 March 2017^
  5. T. E. Narasimhan. Equitas gets final licence for small finance bank Business Standard India, 2 July 2016, retrieved 31 March 2018^
  6. T. E. Narasimhan. Equitas starts Small Finance Bank operations Business Standard India, 5 September 2016, retrieved 31 March 2018^
  7. Equitas Small Finance Bank now becomes a scheduled bank India Infoline News Service, 6 February 2017^
  8. Hamsini Karthik. Equitas Small Finance Bank misses RBI mandate of listing within 3 years Business Standard India, 2019-09-05, retrieved 2019-09-07^
  9. Equitas Small Finance Bank starts operations The Hindu Business Line, 6 September 2016, retrieved 15 March 2017^
  10. Equitas Bank launches FASTag Dataquest, 18 July 2017, retrieved 16 March 2018^
  11. Jose J. Kattoor. Reserve Bank of India imposes monetary penalty on Equitas Small Finance Bank Limited Reserve Bank of India, 8 March 2018, retrieved 26 August 2018^
  12. Rumu Banerjee. RBI penalised 12 banks for various violations in last 6 years The Times of India, 8 March 2018, 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. Brinda Sarkar. Rajeev Srivastava appointed as CEO of Standard Chartered Securities The Economic Times^
  17. Press Trust of India. Equitas Holdings to divest stake in ETPL ahead of merger with Equitas SFB Business Standard India, 2022-01-08, retrieved 2022-03-24^
  18. Equitas SFB slips 13% as new shares list post merger with Equitas Holdings Business Standard, retrieved 8 August 2023^
  19. Dharani Thangavelu. Strong people policies at every stage set EDIT schools apart LiveMint, 6 October 2017, 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^