Kudumbashree to enter banking sector; targets small finance banking licence
Thiruvananthapuram: Kudumbashree is gearing up to enter the banking sector. An agency will be assigned to conduct a feasibility study in this regard.
It is learned that a global tender has been invited for this purpose. Once the tender process is completed and an agency is selected, a report will be filed within 4 months. Based on the report, Kudumbashree will decide whether to enter the banking sector or not.
The Kudumbashree has 43 lakh members in 2.91 lakh units. Among them, 2.29 units are in villages. Kudumbashree’s loans and deposits, which amount to several thousand crores, are spread across various banks. It is in this context that Kudumbashree is planning to enter the banking sector, Kudumbashree Mission executive director S. Harikishore told mathrubhumi.com
As part of micro financing projects, Kudumbashree has availed loans to the tune of Rs 4,132 crore. So far, loans to the tune of Rs 2,03,412 crore have been availed by Kudumbashree members. Moreover, Kudumbashree has deposits to the tune of Rs 5,061.83 crore.
The governing body of Kudumbashree has approved the decision to enter the banking sector. Following this, steps were taken to conduct a feasibility study. Firms with capital of over Rs 200 crore can seek a small financing baking licence. Kudumbashree is expected to receive the license.
If the plan becomes a reality, Kudumbashree members will be able to avail loans at lower rates. Moreover, all of its schemes will come under one roof. This will help members avail loans faster for agriculture and self-employment projects. Kudumbashree will decide on the banking style based on the feasibility study.