Why is Equitas Small Finance Bank in the news?

The Equitas Small Finance Bank has been in the news of financial and banking world for days now after a historic alliance made by the small finance bank. The decision made is one of a kind and is a major makeshift in the history of small finance bank history.

So, what has Equitas Small Finance Bank done?

Well, it recently announced a major tie-up with Google which shall allow the customers of Google Pay (previously known as Tez) to book Fixed Deposits on their platform and the FDs will be issued by Equitas Small Finance Bank. This being a significant development and a growth oriented deal for Equitas has gathered a lot of attention in the recent days. There are chances for questions related to this deal being asked in the upcoming banking exams. As an apirant you should now know all the necessary details about the Equitas Small Finance Bank.

The Financial Express about the alliance said “Equitas-Google tie-up will target a clientele uneconomical for legacy banking to serve.” Although it is yet to be seen how will Reserve Bank of India oversee such a collaboration. RBI has made it clear that it will always have a stringent control over the big fintech companies in India.

Information about Equitas Bank

Equitas Small Finance Bank started out as a small finance bank as a microfinance lender.

Headquarters: Chennai

Founded: 2016

Revenue: 3,641 crores INR (US$510 million, 2021)

Net income: 384 crores INR (US$54 million, 2021)

Key people: Arun Ramanathan (Part-time Chairman); Vasudevan P N (MD & CEO)

Parent organization: Equitas Holding

Milestones achieved by Equitas

In recognition of its excellence in adopting the highest standards of corporate governance, Equitas was recognized as one of the five best governed companies that IPO’ed between 2015 and 2017 & was awarded the CorporateGovernance Award powered by IiAS, IFC & BSE.
In 2017, Equitas won the Times Network Award for Marketing Excellence in Banking, Financial Services & Insurance Sector.
In 2016, Initial Public Offering (IPO) of the shares of Equitas Holdings Limited. Rs. 2,175 Cr IPO was oversubscribed 17.2 times. Equitas Holdings gets HC nod to amalgamate its subsidiaries Equitas Micro Finance (EMFL) Equitas Housing Finance (EHFL and Equitas Finance (EFL)
In 2015, RBI granted in-principle license for Small Finance Bank