An emerging bank, Suryoday Small Finance Bank initiated and commenced last week on 23rd January in the Belapur CBD branch and is aiming at expansion of its branches to 12 by the month of March, which is a great vision for a budding bank.
When the reporters got into a conversation with Bhaskar Babu, CEO and MD, he explained that the bank will be opening three or five correspondents that will execute in a similar fashion as a bank branch. According to this, it would largely benefit the customers by reducing the average response time.
When the CEO was asked the reason for his conversion from a company dealing with micro finance to a bank, he replied that the banking platform enables them to provide a variety of services apart from just loans to the new customers as well the existing customers with whom they have been acquainted for about three to five years now. Their goal is to serve 7.5 lakh customers and provide them with loans of all sorts for their benefit like business loans, housing loans and loans to shopkeepers. These loans are likely to range from high end ones (ten to fifteen lakhs) to the lower end ones (from two to three lakhs).
The bank sector in our country has always been booming and this can lead to a tough competition to the upcoming bank, Suryoday. It is going to offer 6.25% rate of interest for deposits worth up to one lakh and an interest at the rate of 7.25% for an amount in the range of one lakh – ten lakh and for sum more than ten lakh, it is likely to provide interest at the rate of 7%.
The strategy of the bank to cope up with the existing rate of borrowing is to lend money at the rate of 23%, which is around 300 points lesser than the other banks and this strategy might win this bank the popular vote.
The CEO, Bhaskar Babu also confirmed that currently, they are raising money worth 100 crore from an issue of ongoing rights, which would be estimated about 450 crore if all go according to their plans, strategies and estimates. The bank will crawl into the banking industry gradually, starting with 12 banks in March and going up to 90 banks by the end of the next financial year. The workforce of the bank will start from 2100, and will rise up to a total of 2600 by the next 9 months and to 3000 at the end of the financial year of 2018.
We hope that this bank surges with more opportunities and benefits the people to a larger extent.