ESAF Issues Commercial Papers Worth Rs. 330 crore

Destination-Kerala-ESAF-(1)

Mumbai/Thrissur: ESAF Microfinance, the only Company from Kerala to receive the Small Finance Bank licence, has issued Commercial Papers worth Rs. 330 crore. The papers are rated A1 by CARE ratings. The subscribers are major private sector banks and NBFCs.

K Paul Thomas, Chairman and Managing Director, ESAF Microfinance, said that the proceeds will be used to have a positive impact on the short-term funding needs of the organisation.

ESAF Small Finance Bank, the first bank set up in the private sector in Kerala after independence, will be opened on March 17, 2017. The biggest advantage of becoming a bank, according to Thomas, is that ESAF can offer value-based banking with a difference.

The bank will give loans to farming, small businesses, housing and education sectors. It will also have a spectrum of deposit options for all customers, including non-resident Indians (NRIs). The company hopes to start operations with a network of around 85 branches and 300-plus customer touch points in the first year of operations.

Currently, ESAF Microfinance has a network of around 285 branches spread across 11 states.