ESAF Microfinance, the only company from Kerala to receive small finance bank licence, has issued commercial paper (CP) worth ₹330 crore. Rated A1 by CARE ratings, the subscribers to the CP are major private sector banks and NBFCs. K Paul Thomas, Chairman and Managing Director, ESAF Microfinance, said that the proceeds would be used to boost the short-term funding needs of the organisation. He added that this is another example of the thought leadership role played by ESAF.
ESAF Small Finance Bank will be opened on March 17. The biggest advantage of becoming a bank, according to Thomas, is that ESAF can offer value-based banking with a difference.
The bank will provide loans for farming, small businesses, housing and education. It will also have a spectrum of deposit options for all customers, including NRIs.
The company hopes to start operations with a network of around 85 branches and over 300 customer touch points in the first year of operations. Currently, ESAF Microfinance has a network of around 285 branches spread across 11 States.