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Small finance banks look to tap Odisha market for growth

Entities with a small finance bank licence can provide basic banking services of accepting deposits and lending

Nirmalya Behera  |  Bhubaneswar 

Banks

(SFBs) have come up with firm plans for Odisha, a state with a large chunk of areas untouched by banking services.

These new-generation are betting on as the state has more than 4,200 with no access to banking services.

Suryodaya Small Bank, headquartered in Navi Mumbai, is the first among to start its services in the state by opening a branch here.

In Odisha, the new generation bank has approval for opening of another 16 new banking outlets in the next one year. In addition, it will be converting all its 37 micro-branches across into full-fledged banking branches in the next one year.

SFBs are offering niche banking services in India. Entities with a small bank license can provide basic banking service of accepting deposits and lending.

Bank is also planning to start its services in Its operations in are likely to start between December and January. This bank has firmed up plans to expand, covering the entire state. Ujjivan Small Bank also sees as a potential state along with Bank and Suryodaya.

“In Odisha, we believe that there are a lot of customers who are still unserved. Our focus will be on financial inclusion and we are planning to put our outlets where there are no bank facilities”, said an official of a small bank.

Recently, the government and officials of Reserve Bank of India's regional office in Bhubaneswar had met with the officials of payments and small banks, urging them to set up branches in the unbanked areas.

The state government had handed them a list of 677 unbanked to be covered in three years and invited them to set up branches there.

“The are new generation They must focus on expanding their reach to rural and unbanked areas”, said a bank official.

First Published: Fri, November 17 2017. 18:56 IST
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