Janalakshmi Financial Services, India's largest microfinance company in terms of loan outstanding, has received the final approval from Reserve Bank of India (RBI) to set up small finance bank.
Janalakshmi said it would commence operations in the second quarter of the current fiscal. It plans to set up 300 branches during the year covering the major locations in India.
There was anxiety for Janalakshmi for its delay in getting the final license. RBI awarded 10 entities with small finance bank license and seven of them have begun business so far.
"We are excited about this and this will take us closer to our vision of financial inclusion in its true sense," VS Radhakrishnan, managing director of Janalakshmi was quoted.
The licence to operate as a small finance bank will enable it to help its existing over 50 lakh customers to access banking services. It's gross loan portfolio at the end pf December last year was Rs 12,416 crore, well ahead of the next largest MFI Bharat Financial Inclusion's Rs 8,531 crore.
