Micro-lender Ujjivan Financial Services, which has launched a Rs 885-crore IPO, will open 100 odd bank branches to meet the regulatory norm for a small bank licence. “We need to have 25 percent of bank branches in unbanked areas. Currently, we have none. Due to operational factors our existing branches are mostly next to PSU bank braches. We propose to set up about 100 new branches in unbanked locations,” Ujjivan MD and CEO Samit Ghosh told PTI.
He said identification process for such new branches had begun and the company which would become the holding company for the proposed Ujjivan Small Bank would meet the criteria once the bank is launched. Ghosh had said the bank would be launched by April 2017. Another requirement which Ujjivan has to fulfil is to bring down the foreign holding 49 percent or lower.