Jana Small Finance Bank on Wednesday announced the commercial launch of its banking operations, through which it is targeting 45 lakh customers.
The bank is offering an inaugural interest rate of 8.5% on fixed deposits for 366 days. For senior citizens, the rate is up to 9.1% for the same tenor. Also, the bank said that it will offer zero-balance - basic savings bank deposit account.
Claiming the launch to be in line with financial inclusion policy of the government and Reserve Bank of India (RBI), the bank said the transition from a micro finance company to a bank is set to enable more than 45 lakh existing loan customers of Jana Small Finance Bank to come into banking ecosystem by the end of 2018.
Former deputy governor of RBI R Gandhi, who launched the banking operations said, "I am happy to note the progress the bank has made from a MFI to a Bank. I wish the bank all the best and success in its mission to boost financial inclusion in India."
The bank has started its banking operations with Capital Adequacy Ratio (CAR) of about 35% and loan book of Rs 7,600 crore as on March 31, 2018.
"Financial inclusion continues to be a major challenge in India, not just for the poor but the aspirational middle class as well as for the millions of micro and small enterprises," Ramesh Ramanathan, Non-Executive Chairman, Jana Small Finance Bank said.
For covering its extensive customer base, the bank has launched 157 bank branches, which includes 12 branches in unbanked rural areas. By end of 2019, Jana Bank’s 500 branches will be operational in 19 states, post conversion of majority of its micro finance storefronts into bank branches.
“This sector is large, challenging and has great opportunities for a bank dedicated on this mission. We are also delighted that we will give opportunities for banking careers in approximately 500+ districts that we plan to serve across India," Ajay Kanwal, MD and CEO, Jana Small Finance Bank said.
About 150 of bank's branches will also cater to small and medium enterprises. For bolstering its current manpower of 15,000, it is planning to hire 1000 employees by end of the current financial year.