Annapurna Finance on same path of Bandhan Bank

Bhubaneswar-based company Annapurna Finance has applied for the universal bank licence and set itself on the same path that Bandhan Bank took eight years ago.Reserve Bank of India (RBI) said Annapurna Finance is the only entity who had applied for a universal bank licence in last month ie. December through the on-tap licensing route.If it makes the cut then company will become second microfinance institution to receive a universal bank licence after Bandhan Bank in 2015. This, after Sachin Bansal-backed Chaitanya India Fin Credit fell short in 2022.The journey of Annapurna Finance began in 1990 as a society by the name of People’s Forum. Promoted by Gobinda Chandhra Pattnaik, the forum began operations in the Khurda district of Odisha with an aim to help self-help groups and promote socioeconomic development of surrounding area.

Broadly company is engaged in microfinance lending to women borrowers under self-help groups, joint-liability groups, individual loans, housing loans and MSME loans.Annapurna Finance has strong capitalisation, long track record of the promoters in the microfinance industry and diversified resource profile lend comfort as far as the ability of the company to repay loans is concerned, says credit rating agency CareEdge. In fact, CareEdge has reaffirmed its ‘CARE A’ rating on the company’s Rs 1,312 crore long-term facility and ‘Stable Outlook’, according to a press release dated December 28.

Date :7/1/23  Information from Sources