Under a pilot project named “Easy Banking,” FirstRand Bank, a commercial bank based in South Africa, is providing financial services to shops and other small businesses in areas of suburban Mumbai, such as Bandra and Lokhandwala, based on the rationale that competition is too fierce in areas with higher population densities. Since June 2014, the pilot has provided credit facilities, deposit services, point-of-sales machines and automated teller machines (ATMs).
The pilot project follows a similar effort started in October 2012 in Dharavi, a slum in Mumbai, where FirstRand opened 65,000 bank accounts. Rohit Wahi, chief executive officer of First Rand Bank India, was quoted as saying that: “if it [Easy banking] works fine then we can go to 20 areas in one go” [1].
FirstRand Bank India posted a loss of INR 76.75 crore (USD 1.26 million) for 2013-14 with total assets of INR 1,350 crore (USD 22.1 million) as of June 30 2014.
As of June 30, 2014, FirstRand Limited reports total assets of ZAR 946 billion (USD 85.7 billion), return on equity of 24.2 percent and return on assets of 2.06 percent.
By Simon Pfanner – Research Associate
About FirstRand Limited
Founded in 1998, FirstRand Limited is a financial service provider based in Johannesburg, South Africa. It offers banking services through the following subsidiaries: First National Bank (FNB) Botswana, FNB Lesotho, FNB Namibia, FNB South Africa, FNB Swaziland, FNB Tanzania and FNB Zambia. FirstRand Bank India launched operations in 2009 in India. It focuses on investment and corporate banking as well as retail and commercial businesses. In 2012, it began pilot efforts in microfinance. As of June 30, 2014, FirstRand Limited reports total assets of ZAR 946 billion (USD 85.7 billion), return on equity of 24.2 percent and return on assets of 2.06 percent. FirstRand Bank India posted a loss of INR 76.75 crore (USD 1.26 million) for 2013-14 with total assets of INR 1,350 crore (USD 22.1 million) as of June 30 2014.
Sources and additional information
[1] Business Standard, FirstRand Bank focuses on urban unbanked
MicroCapital, April 16, 2013, First National Bank (FNB) of South Africa, OK Zimbabwe Introduce Mobile Money Transfer Corridor
MicroCapital, December 25, 2012, FirstRand Bank of South Africa receives $300m line of credit from African Development Bank (AfDB)
MicroCapital Universe Profile: FirstRand Limited
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