India's newest commercial bank, (JSFB), plans to recruit 1,000 fresh employees in the current financial year to meet its expansion roadmap.
The bank, which started commercial operations in July 2018, was the last microfinance company to convert into a small finance bank (SFB) about three years after getting the Reserve Bank of India's (RBI's) nod.
So far, JSFB has launched 151 branches, which the bank targets to ramp up to 500, across 19 states, by the end of the current financial year, primarily by converting most of its microfinance setups into regular bank branches. The additional hiring of 1,000 heads to man its new branches would add to the current headcount of 15,000.
Besides, 150 of these branches would also cater to the needs of the small and medium enterprises. The bank offers all key banking services -- deposits and advances to the under and unbanked segments, small businesses, small and marginal farmers, micro and small industries, etc.
JSFB MD & CEO Ajay Kanwal said the bank was bullish on future growth prospects, especially in the domains of home loan, gold loan, animal husbandry, etc. Meanwhile, the bank has also launched its maiden branch in Lucknow.
The small finance segment has started to look up after facing initial hiccups during the demonetisation phase, he said, adding that the USP of the bank was higher interest rate offered on deposits to senior citizens and paperless lending transactions.
"In UP, we have launched gold loan product at three branches as a pilot and, depending upon the feedback, it would be extended to other branches," he said.
The bank currently serves half a million customers in UP through eight branches, apart from 43 microfinance branches, several of which would be upgraded to regular branches going forward.
Kanwal said the bank had a loan book of Rs 85 billion pan-India, apart from a deposit base of Rs 17 billion. Post the transition phase, the bank now boasts of a pan-India customer base of 4.5 million and capital adequacy ratio (CAR) of 35 per cent. By 2020, it targets to add 4 million customers.
The Bengaluru-based SFB was earlier called Janalakshmi Financial Services (JFS), which in 2017 had featured in 'Fortune – The Top 500' as the largest corporations in India and was awarded as India's Distinctive Goodwill Brand for 2017. However, the bank weathered headwinds during demonetisation, which led to a dip in asset quality and also capital erosion. It had reported a loss of almost Rs 25 billion at the end of March 2018.
Although it received the final license in April 2017, the bank facilitated capital infusion of Rs 20 billion before rolling out commercial operations. In September 2015, the central bank had accorded in-principle approval for 10 SFB applicants for boosting access to financial services in the hinterland.