Bengaluru-based Jana Small Finance Bank has announced the commercial launch of its banking operations. The transition from a micro finance company to a bank is set to enable more than 45 lakh existing loan customers of Jana Small Finance Bank to come into banking ecosystem by the end of 2018.
The bank is focused on providing better returns on its customer’s money and hence is set to offer an inaugural rate of 8.5 percent on Fixed Deposits for 366 days. For senior citizens, the rate is up to 9.1 percent for the same tenor. Also, to further value its Group Loan Customers’ money, the bank will offer zero-balance - Basic Savings Bank Deposit Account.
Ajay Kanwal, MD & CEO, Jana Small Finance Bank said, “Jana Bank is excited about its journey to partner an aspirational India grow especially in the rural and unbanked sector. This sector is large, challenging and has great opportunities for a bank dedicated on this mission. We are also delighted that we will give opportunities for banking careers in approximately 500+ districts that we plan to serve across India. Given our experience, we aim to be a household name serving all needs of our customers, both individuals and businesses.”
The bank has started its banking operations with a loan book of Rs 7,500 crore as on March 31, 2018. For covering its extensive customer base, the bank has launched 157 bank branches, which includes 12 branches in unbanked rural areas. By end of 2019, Jana Bank’s 500 branches will be operational in 19 states, post conversion of majority of its micro finance storefronts into bank branches. 150 of its branches will also cater to small and medium enterprises. For bolstering its current manpower of 15,000, it is planning to hire 1000 employees by end of current year.
The bank will continue with micro finance lending and in unison it will extend business loans, agri loans, affordable housing loans and gold loans.
Having received its SFB licence in April 2017, Jana claims to open accounts within 3 minutes.