Mumbai, Nov 14 (IANS) Microfinance institution Ujjivan Financial Services on Monday said it has received the final approval from the Reserve Bank of India (RBI) to start small finance bank operations.
"Ujjivan Small Finance Bank has received the final licence from RBI and would start banking operations in the first quarter of 2017," said Ujjivan, which ranks among the three leading institutions in the Indian microfinance sector, in a release here.
"This approval from RBI has taken us a step closer to our mission of providing comprehensive financial inclusion to the segments we wish to serve," Chief Executive Samit Ghosh said in the statement.
"Our experience of functioning as an MFI for over a decade in the segments we have served will immensely benefit the future operations of Ujjivan Small Finance Bank," he said.
The company is currently in the process of executing the final building blocks for the transition and is testing technology, operations and mobility solutions created specifically for the small finance bank, he added.
According to the release, Ujjivan posted a net profit of Rs 144.4 crore for the half year ended September 30. The company's gross loan book as on that date stood at Rs 6,485.93 crore with a repayment rate of 99.78 per cent.
