Equitas Small Finance Bank

{{Infobox company

| name = Equitas Small Finance Bank.

| native_name = Small bank of Bank india

| founded = 2007

| type = Public

| traded_as = {{NSE|EQUITASBNK}}
{{BSE|543243}}

| ISIN = INE063P01018

| revenue = {{increase}} {{INRconvert|3641|c}}{{cite news |title=Statement of Audited Financial Results for the quarter ended and year ended March 31, 2021 |url=https://ir.equitasbank.com/wp-content/uploads/2021/04/29042021IntimationtoSEResults.pdf |access-date=22 June 2021 |work=Equitas Small Finance Bank}}

| revenue_year = FY 2021

| profit = {{increase}} {{INRconvert|384|c}}

| profit_year = FY 2021

| services = Banking, financial services

| logo = Equitas-logo.png

| logo_size =

| num_employees =

| key_people = Arun Ramanathan {{small|(Part-time Chairman)}}
Vasudevan P N {{small|(MD & CEO)}}

| location = Phase-II, 4th Floor, Spencer Plaza, No-769, Anna Salai

| location_city = Chennai

| location_country = India

| website = {{URL|https://www.equitasbank.com}}

}}

Equitas Small Finance Bank (erstwhile Equitas Microfinance Ltd) is a small finance bank founded in 2016 as a microfinance lender.{{Cite web|date=2016-07-01|title=Equitas gets RBI nod to commence Small Finance Bank operations|url=https://zeenews.india.com/business/news/companies/equitas-gets-rbi-nod-to-commence-small-finance-bank-operations_1902360.html|access-date=2021-03-24|website=Zee News|language=en}}{{Cite web|title=Equitas Small Finance Bank starts operations|url=https://www.thehindubusinessline.com/money-and-banking/equitas-small-finance-bank-starts-operations/article9075512.ece|access-date=2021-03-24|website=@businessline|date=6 September 2016 |language=en}} The Bank has its headquarters in Chennai, and is a subsidiary of holding company Equitas Holdings Ltd.{{Cite web|url=https://www.bloomberg.com/profiles/companies/0894329D:IN-equitas-small-finance-bank-ltd|title=Equitas Small Finance Bank ltd|website=Bloomberg|access-date=15 March 2017}}

History

After receiving license from the Reserve Bank of India (RBI) on 30 June 2016,{{cite news|last1=Narasimhan|first1=T. E.|title=Equitas gets final licence for small finance bank|url=http://www.business-standard.com/article/finance/equitas-gets-final-licence-for-small-finance-bank-116070100190_1.html|access-date=31 March 2018|work=Business Standard India|date=2 July 2016|location=Chennai}} Equitas Small Finance bank began banking on 5 September 2016.{{cite news|last1=Narasimhan|first1=T. E.|title=Equitas starts Small Finance Bank operations|url=http://www.business-standard.com/article/companies/equitas-starts-small-finance-bank-operations-116090500377_1.html|access-date=31 March 2018|work=Business Standard India|date=5 September 2016|location=Chennai}} With effect from 4 February 2017, Equitas became a scheduled bank.{{Cite news|url=http://www.indiainfoline.com/article/news-top-story/equitas-small-finance-bank-equitas-small-finance-bank-now-becomes-a-scheduled-bank-117020600099_1.html|title=Equitas Small Finance Bank now becomes a scheduled bank|date=6 February 2017|work=India Infoline News Service}} However, the company failed to meet the RBI's mandate of listing within three years of starting operations. A review from the Securities and Exchange Board of India and RBI is awaited.{{Cite news|url=https://www.business-standard.com/article/economy-policy/equitas-small-finance-bank-misses-rbi-mandate-of-listing-within-3-years-119090500069_1.html|title=Equitas Small Finance Bank misses RBI mandate of listing within 3 years|last=Karthik|first=Hamsini|date=2019-09-05|work=Business Standard India|access-date=2019-09-07}}

Operations

The bank planned to build a network of 412 branches located in 11 Indian states by the end of fiscal year 2016-17.{{Cite news|url=http://www.thehindubusinessline.com/money-and-banking/equitas-small-finance-bank-starts-operations/article9075512.ece|work=The Hindu Business Line|title=Equitas Small Finance Bank starts operations|date=6 September 2016|access-date=15 March 2017|location=Mumbai}} However, for rendering technology oriented services, 83% of transactions occurring online as of July 2017. This includes the bank providing an RFID sticker to pay road tolls automatically, with settlements occurring digitally.{{cite web|title=Equitas Bank launches FASTag|url=http://www.dqindia.com/equitas-bank-launches-fastag/|website=Dataquest|access-date=16 March 2018|date=18 July 2017}}

On 1 March 2018, the bank was penalized ₹1 million (US${{To USD|1000|IND|round=yes}} thousand) by the Reserve Bank of India for rolling out investment, pension, and insurance services without obtaining prior approval.{{cite web |last1=Kattoor |first1=Jose J. |title=Reserve Bank of India imposes monetary penalty on Equitas Small Finance Bank Limited |url=https://www.rbi.org.in/Scripts/FS_PressRelease.aspx?prid=43327&fn=2745 |website=Reserve Bank of India |access-date=26 August 2018 |date=8 March 2018}}{{cite news |last1=Banerjee |first1=Rumu |title=RBI penalised 12 banks for various violations in last 6 years |url=https://timesofindia.indiatimes.com/business/india-business/rbi-penalised-12-banks-for-various-violations-in-last-6-years/articleshow/64322972.cms |access-date=2 November 2018 |work=The Times of India |date=8 March 2018}}{{cite news |title=RBI imposes Rs 10L fine on Equitas SFB for selling products without approval |url=https://economictimes.indiatimes.com/industry/banking/finance/rbi-imposes-rs-10l-fine-on-equitas-sfb-for-selling-products-without-approval/articleshow/63221349.cms |access-date=2 November 2018 |work=The Economic Times |date=8 March 2018}}

The bank became a public company via an initial public offering (IPO) in October 2020.{{cite news |title=Equitas Small Finance Bank IPO fully subscribed on last day |url=https://economictimes.indiatimes.com/markets/ipos/fpos/equitas-small-finance-bank-ipo-fully-subscribed-on-last-day/articleshow/78804963.cms |access-date=22 June 2021 |work=The Economic Times}}

In 2021, Equitas Small Finance Bank partnered with the neobanking company Niyo to launch a mobile banking platform called NiyoX.{{cite news |title=Niyo partners with Equitas SFB to launch NiyoX for millennials |url=https://bfsi.economictimes.indiatimes.com/news/fintech/niyo-partners-with-equitas-sfb-to-launch-niyox-for-millennials/81687621 |access-date=22 June 2021 |work=Economic Times |language=en}}

On 23 November 2021, the bank announced its partnership with HDFC Bank, for a co-branded credit card. {{cite news |last1=Sarkar |first1=Brinda |title=Rajeev Srivastava appointed as CEO of Standard Chartered Securities |url=https://economictimes.indiatimes.com/industry/banking/finance/rajeev-srivastava-appointed-as-ceo-of-standard-chartered-securities/articleshow/87623920.cms |work=The Economic Times}}

In 2021, the boards of both Equitas Small Finance Bank and its holding company, Equitas Holding Company, approved a reverse merger between the two companies.{{Cite news |last=Press Trust of India |first= |date=2022-01-08 |title=Equitas Holdings to divest stake in ETPL ahead of merger with Equitas SFB |work=Business Standard India |url=https://www.business-standard.com/article/companies/equitas-holdings-to-divest-stake-in-etpl-ahead-of-merger-with-equitas-sfb-122010800782_1.html |access-date=2022-03-24}} The merger was completed in March 2023.{{cite news |title=Equitas SFB slips 13% as new shares list post merger with Equitas Holdings |url=https://www.business-standard.com/article/markets/equitas-sfb-slips-13-on-listing-new-shares-post-merger-of-equitas-holdings-123031000165_1.html |access-date=8 August 2023 |work=Business Standard}}

Philanthropy

Equitas Microfinance Ltd established Equitas Development Initiatives Trust (EDIT) in 2008 to provide social services.{{cite web|last1=Thangavelu|first1=Dharani|title=Strong people policies at every stage set EDIT schools apart|url=http://www.livemint.com/Companies/FkTDhOuKTTRstT6Y89NNUN/Strong-people-policies-at-every-stage-set-EDIT-schools-apart.html|website=LiveMint|access-date=17 March 2018|date=6 October 2017}} In 2018, the bank committed 5% of profits to EDIT.{{cite web|title=Equitas Group commits contributing 5% of its annual profits to its Trust|url=http://indiacsr.in/csr-equitas-group-commits-contributing-5-of-its-annual-profits-to-its-trust/|website=India Corporate Social Responsibility Network|access-date=17 March 2018|date=2 March 2018}}

EDIT established Equitas Gurukul Matriculation Schools in 2010. By 2017, the schools were employing 400 people, and educating 5,700 students, primarily from backgrounds that offered limited opportunities. EDIT also has a programme called Equitas Bird's Nest that seeks to help impoverished pavement dwellers. In March 2018, EDIT celebrated the milestone of improving the quality of life for 1,300 families in Chennai through this programme.{{cite web|title=Equitas Small Finance Bank rehabilitates 1300 pavement dwellers in Chennai|url=http://indiacsr.in/equitas-small-finance-bank-rehabilitates-1300-pavement-dwellers-chennai/|website=India Corporate Social Responsibility Network|access-date=17 March 2018|date=2 March 2018}}