Northeast India’s first small bank, North East Small Finance bank (NESFB) started its services on Sunday.
Rashtriya Gramin Vikas Nidhi (North East) Microfinance Limited received the Small Finance Bank License from the Reserve Bank of India (RBI) on March 31, 2017.
Tata, through his investment arm RNT Associates, has invested Rs 40 crore in the bank.
Tata who was in Guwahati said, “If India has to grow as a prosperous place we need to create opportunities and entrepreneurship.”
RGVN(North East) Microfinance Limited got Reserve Bank of India’s Small Finance Bank license on March 31, 2017 mandating it to carry out banking services in remote and “unbanked” areas of India’s eight Northeastern states, as well as in West Bengal and registered a Public Limited Company by the name ‘North East Small Finance Bank Ltd’.
Rupali Kalita, MD & CEO NESFB said, “We have robust expansion plan. We are starting with 28 branches and will soon add another 80 branches.”
North East Small Finance Bank Ltd which has a net worth of Rs 300 Crore is supported by infusion of funds from domestic and overseas investors.
According to the bank, “During the years of operation RGVN(NE)MFL got equity investment and able support from Small Industries Development Bank of India (SIDBI), The North Eastern Development Finance Corporation Ltd (NEDFi),Opportunity International, Australia (through DiaVikas Capital Pvt. Ltd. (India), Brahmaputra Community Development Trust (BCDT), Nordic Microfinance Initiative – Norway, Oiko Credit Netherlands.
Fresh equity for strengthening the capital base to promote the banking company was received from SIDBI Venture Capital, RNT Associates Pvt. Ltd. (Tata Trust), Pi Ventures LLP, Bajaj Allianz Life Insurance Company, Small Industries Development Bank of India (SIDBI), Nordic Microfinance Initiative, and DiaVikas Capital.