ESAF Bank kicks off operations in TN

This is as per bank’s expansion plans outside Kerala where they have already established 12 fully functional branches. The bank, which is the first ever Private scheduled bank in Kerala post-independence, is also the first small finance bank from the state. “ESAF will soon open branches at Ilaya Muthur in Tiruppur and Poomalaikund in Theni” said K Paul Thomas, MD-CEO, ESAF. 

ESAF is among the first five out of the 10 licensees which got permission from RBI for setting up Small Finance Banks. The bank plans to open 85 branches across the country in the coming three months. In accordance with the RBI guidelines, the bank is required to open 25 per cent of its branches in unbanked rural centres. The Bank is also planning to open branches in places such as Bengaluru, Kolkata, Mumbai, New Delhi and Hyderabad in the first year. In some of these cities, work has already started. 

“ESAF, which started as micro finance agency in 1992 has today a wide network across the country. All the 285 branches in 93 districts spread over 11 states in the country will be converted to customer service centers or ultra-small branches or satellite offices,” said Paul K Thomas. Besides Kerala, ESAF has its functions in TN, Karnataka, Madhya Pradesh and Maharashtra. ESAF, which has own fund of over Rs 300 crore, recently raised another Rs 330 crore through the issue of commercial papers. The bank is planning to divest stake by the end of fiscal 2018 and then follow it up with an IPO by 2020. By then, it is targeting a business of Rs 20,000 crore. 

The bank proposes to offer between 5.75 per cent and 9 per cent for term deposits of varying maturities. For savings deposits, the rates vary from 6 per cent to 7 per cent, based on the outstanding balance in the account. Senior citizens will be entitled to an additional 0.5 pc for term deposits. 

On par with innovative technologies in banking field ESAF offers paper less account opening, cash home delivery, Biometrics facility for online money transfer and online shopping facilities. Mobility banking will help the customers to get better and faster service. “We are planning to appoint 10,000 banking associates for providing services at doorstep,” said Paul K Thomas.