Vikram Akula, founder and former chairperson of SKS Microfinance, is set to acquire a 26% stake in financial inclusion start-up Vaya and, thereafter, apply for small bank licence, the company said in a statement on Wednesday.
Akula, whose three-year non-compete agreement with SKS ended in November 2014 said Vaya intends to apply for a bank licence. “We are working with our advisors on preparing a small bank licence application.” Vaya is a business correspondent (BC) service provider, which facilitates savings and loans for self-help groups of women on behalf of banks.
The Reserve Bank of India (RBI) had released final guidelines for small banks last month and microfinance institutions are likely to apply since they would be able to raise cheaper funds in the form of deposits.
“While Vaya has a robust plan to grow as a BC, a small bank licence will assist us in furthering financial inclusion by providing loans to small business units, small and marginal farmers, micro and small industries and other unorganised sector entities,” said Vikram Akula.
However, Akula, who was also appointed Vaya chairman, added that the firm also has an option to apply for a payment bank licence. When Akula left SKS Microfinance in November 2011, he had entered into a non-compete agreement, which prevented him from entering any sector where SKS operates. “Now that my three-year non-compete period is over, I was looking to get back to financial inclusion,” said Akula.
The company, founded by former SKS Microfinance executives, opened its first branch in July 2014 and has 23 branches with 183 employees across six districts of eastern Maharashtra and northern Karnataka.