Jana Small Finance Bank announces banking operations

Bengaluru-based Jana Small Finance Bank has announced the launch of its commercial banking operations, three years after receiving an in-principle nod from the RBI. It was first founded as a microfinance institution in 2008, named Janalakshmi Financial Services.

The bank has served over 8 million people with the help of more than 14,000 dedicated employees. It is operational in 19 states across the country, serving the people through over 450 banking outlets.

Jana Small Finance Bank aims to serve customers from every section in the country, with a special focus on the low-income and under-banked sections of the society to enable financial inclusion.

The bank is set to offer an inaugural rate of 8.5% at fixed deposits for 366 days while also providing a rate of 9.1% for senior citizens for the same duration. To further its goal of financial inclusion, it will be offering zero-balance accounts – Basic Savings Bank Deposit Account for its customers.

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 ₹7,500 crores as on March 2018. The bank has launched 157 bank branches, including 12 in the rural and unbanked areas, to cover the lower section of its customer base. The bank is also planning to hire another 1,000 employees by the end of this financial year to keep up with new branches and catering to a growing customer base.

To reach the rural and unbanked population of India, recently in 2017, RBI has also given license to 11 payment bank, so far 6 payment banks are operational in the country. These include Airtel Payment Bank, Paytm Payment Bank, India Post Payment Bank, Fino Payment Bank, Aditya Birla Idea Payment Bank, Jio Payment Bank.