Jana Small Finance Bank (SFB) is planning to open 200 branches over 18 months, said a top official.
“Recently, we opened our 500th branch in Bengaluru. We will be opening about 100 to 110 branches by March 2021,” said Ajay Kanwal, MD and CEO.
“The next year will see the opening of another 100 branches. While we have already planned for about 110 branches for the current fiscal and another 30-40 branches for the next fiscal, the balance is yet to be finalised,” he said.
According to him, it would cost about ₹20 lakh to open a branch and the funding would be met through internal accruals. Right now, Currently, Jana SFB is presenthas presence in 22 States with a major presence in Tamil Nadu and Karnataka followed by Maharashtra. Most of the branches would come up in tier-II and tier-III cities.
Mr. Kanwal also said the bank was planning to go for an initial public offering (IPO) by March 2021.Preparations were on and the draft red herring prospectus (DHRP) would be filed in the coming months. He also said currently, right now the promoters’ stake stood at held a stake of about 42%.
On collections front, he said: “Last fiscal, we did a business of about ₹22,000 crore and this fiscal, we expect to post 10-15% growth. The worst is over for us. We are recording 95-97% in collections against 90% for the previous month. Microfinance collection is about 85%. The growth story will continue even after the festival.”
Out of the total business portfolio, MSMEs accounted for 30% of the total pie, agriculture 20%, home loans 8% and gold loans about 7%, he said.