After being denied permission to set up a small finance bank by RBI, microfinance lender Satin Creditcare Network now plans to seek universal banking licence in two years.
"We would like to continue to be an NBFC for some more time. After some size, we can apply for universal bank licence. I think we will still take two years to get ready for that. We are working on that. When we feel we can operate better as a bank, we will approach RBI," its Chief Operating Officer Vivek Tiwari told PTI.
Despite satisfying the criterion set by Reserve Bank to get licence as small finance bank (SFB), Satin Creditcare last year missed the licensing nod alongside another micro lender SKS Microfinance.
Tiwari said Satin will use the time as an opportunity to learn from other financial institutions who got in-principle approval from Reserve Bank to start SFB.
"Now we have enough time to get learning from others. Our clients need some more products, remittance products. As of now we want to see the experience, Bandhan (Bank) is doing very well. In the SFB we want to see the results, success and failure of others...Later on we want to become the bank for the poor", Tiwari said.
Earlier this year, the microfinance institution had raised a sum of Rs 100 crore from NABARD and Rs 50 crore under MUDRA scheme to service more customers, he added.
With an average ticket-size of Rs 25,000-26,000, the firm disburses loans to about 1.5 lakh entities/individuals per month, taking the loan disbursal to nearly Rs 400 crore a month.
Satin Creditcare Network Ltd (SCNL) is also planning to go fully digital in both collection and disbursal of loans, which presently happens fully in cash mode.
Also, on expansion of services, the company plans to start its services in south India beginning with Karnataka this year, Tiwari said along with expansion in the north-east in Assam.
At present, SCNL operates in Bihar, Chandigarh, Delhi, Haryana, Jammu , Maharashtra, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Gujarat and West Bengal.
The company also plans to increase head-count by adding another 2,000 employees this financial year, taking the total strength to 5,000 people.
