Equitas Small Finance Bank (erstwhile Equitas Microfinance Ltd) is a

small finance bank Small may refer to: Science and technology * SMALL, an ALGOL-like programming language * Small (anatomy), the lumbar region of the back * ''Small'' (journal), a nano-science publication * <small>, an HTML element that defines smaller text ...

founded in 2016 as a microfinance lender. The bank has its headquarters in

Chennai Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...

, and is a subsidiary of

holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

Equitas Holdings Ltd.

History

After receiving license from the

Reserve Bank of India The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible f ...

(RBI) on 30 June 2016, Equitas Small Finance bank began banking on 5 September 2016. With effect from 4 February 2017, Equitas became a scheduled bank. However, the company missed on RBI's mandate of listing within 3 years of commencement of its operations. Review from the Securities and Exchange Board of India and RBI is awaited. The bank planned to build a network of 412 branches located in 11

Indian states India is a federal union comprising 28 states and 8 union territories, with a total of 36 entities. The states and union territories are further subdivided into districts and smaller administrative divisions. History Pre-indepen ...

by the end of fiscal year 2016-17. However, for rendering technology oriented services, 83% of transactions occurring online as of July 2017. This includes the bank providing an RFID sticker to pay road tolls automatically, with settlements occurring digitally. On 1 March 2018, the bank was penalized ₹1 million (US$ thousand) by the Reserve Bank of India for rolling out investment, pension, and insurance services without obtaining prior approval. The bank became a

public company A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( ...

via an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

(IPO) in October 2020. In 2021, Equitas Small Finance Bank partnered with the

neobank A neobank (also known as an online bank, internet-only bank, virtual bank or digital bank) is a type of direct bank that operates exclusively online without traditional physical branch networks. The term "challenger bank" is used in the UK to re ...

ing company Niyo to launch a

mobile banking Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Unlike the related internet banking it uses ...

platform called NiyoX. On 23 November 2021, the bank announced its partnership with

HDFC Bank HDFC Bank Limited (also known as HDB) is an Indian banking and financial services company headquartered in Mumbai. It is India's largest private sector bank by assets and world's 10th largest bank by market capitalisation . It is the third lar ...

, for a co-branded credit card. In 2021, the boards of both Equitas Small Finance Bank and its holding company, Equitas Holding Company, approved a

reverse merger A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. Sometimes, conversely, the public compa ...

between the two companies.

Equitas Development Initiatives Trust

Equitas Microfinance Ltd established Equitas Development Initiatives Trust (EDIT) in 2008 to provide social services. In 2018, the bank committed 5% of profits to EDIT. EDIT established Equitas Gurukul Matriculation Schools in 2010. By 2017, the schools were employing 400 people, and educating 5,700 students primarily from backgrounds that offered limited opportunities. EDIT also has a programme called Equitas Bird's Nest that seeks to help impoverished

pavement dwellers Pavement dwellers refers to informal housing built on the footpaths/pavements of city streets. The structures use the walls or fences which separate properties from the pavement and street outside. Materials include cloth, corrugated iron, cardboa ...

. In March 2018, EDIT celebrated the milestone of improving the quality of life for 1,300 families in Chennai through this programme.

References

External links

* Small finance banks Financial services companies based in Chennai Banks established in 2007 Indian companies established in 2007 Private sector banks in India 2007 establishments in Tamil Nadu Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange {{India-company-stub

History

Equitas Development Initiatives Trust

See also

References

External links