FINO PAYMENTS BANK which is backed by Private Sector Bank ICICI Bank and Oil marketing king BPCL, has commenced operations with 410 branches from Monday the 17th July 2017. It has 25,000 touch points spread over 14 states.
The Bank has plans to raise Rs. 200 crore from new investors team, during the current financial year, which would augment its funding its network expansion strategies. IN order to meet the regulatory guidelines, the bank during its Second and Third year of operations, the bank proposes to go for listing on the exchanges. The listing the bank official said would depend on bank’s reaching the break even. FINO in January this year, completed its Rs. 400 crore fundraising. Along with, the company also has duly complied with RBI guidelines on keeping majority domestic holding.
We might recall that the RBI norms stipulates that a minimum of 40 per cent of share holding shall be that of the promoter and 51 per cent be that of domestic holding in the Payments Banks promoted, among other conditions. That is to say the promoters’ minimum initial contribution to the paid up share capital of an SFB shall be at atleast 40 per cent locked in for five years from the date of commencement. The condition of maintaining 51 per cent towards domestic holding is complied with the holding company as the promoter of the bank,
PAID UP SHARE CAPITAL is the amount of money a company has received from shareholders, in exchange for shares of stock. Paid up capital is created when a company sells off its shares on the primary market, through IPO or Initial Public Offering of shares to the investors.
We might recall that AIRTEL PAYMENTS BANK, PAYTM PAYMENTS BANK AND POSTAL BANK have been operational since Janury 2017.