After launching a Rs 885 crore initial public offering (IPO), Microfinance firm— Ujjivan Financial Services Ltd has decided to open 100 bank branches in order to meet the regulatory norm for a small bank licence.
“We are planning to have at least 25% of bank branches in unbanked areas. At present, we have none. Due to operational factors our existing branches are mostly next to PSU bank branches. We will open around 100 branches in unbanked locations,” Ujjivan managing director and Chief Executive Samit Ghosh said.
Ghosh said the process of identifying such new branches has already kicked off. The holding company for the proposed Ujjivan Small Bank would fulfill all the criteria once the bank is thrown open. Bank would be launched by April 2017, he added. Ujjivan has to bring down the foreign holding to 49% or lower as per the norms of the regulatory authority. According to regulatory requirement, the foreign holding in the small bank has to be less than 49%.
According to reports, Ujjivan has about 11.15% market share of the non-banking financial company and microfinance institution sector in the country with some 470 branches spread across 24 states.