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Annapurna Finance applies to RBI for universal bank license

January 06, 2023

Annapurna Finance applies to RBI for universal bank license
Bhubaneswar-based microfinance non-banking financial company (NBFC) Annapurna Finance has applied for an on-tap license to operate as a universal bank (UB), according to the Reserve Bank of India (RBI).

The central bank in a statement on Wednesday said it received the application from the company “during the quarter ended December 31, 2022, under the Guidelines for ‘on tap’ Licensing of Universal Banks in the Private Sector dated August 1, 2016.”

Established in 2009, the company was registered with RBI as an NBFC-MFI in 2013. It provides working capital credit of ₹50,000 to ₹25 lakh to MSMEs apart from housing finance, loans to people with disability or financially excluded sections of the society, loans to street vendors, dairy development loans, etc.

As of September 2022, the company had a portfolio outstanding of ₹7,322 crore with 2.3 million borrowers and had 1,120 branches across 20 states.

“It makes a strong case to have a large localised bank with a strong focus on financial inclusion. Moreover, there are no nationalised banks currently headquartered in Bhubaneswar. So, Annapurna Finance seems to focus on emerging as an MSME lender focusing on areas where financial inclusion is slower and bank branch presence is lower,” a source on anonymity told FE Aspire. The company’s MSME portfolio was around ₹1,400 crore catering to around 25,000 micro entrepreneurs.

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