Centrum and BharatPe to jointly build a Small Finance Bank

By Leandra Monteiro

The Reserve Bank of India (RBI) has issued an In-principle approval to Centrum Financial Services Limited (Centrum), the established and profitable NBFC arm of the Centrum Group, to establish a Small Finance Bank (SFB).  Resilient Innovations Private Limited better known as BharatPe, one of India’s fastest-growing FinTech companies, will be an equal partner.

Starting off with existing capabilities of an NBFC and a FinTech, active and potential customer base, digital reach and technology, should enable the SFB to scale up quickly. The SFB will be guided by the directions and timelines of the RBI on the amalgamation of Punjab & Maharashtra Co-Operative Bank Limited.

Commenting on the development, Jaspal Bindra, Executive Chairman, Centrum Group said, “We are delighted that a new banking license will be issued to a NBFC after a gap of nearly 6 years and would like to thank the RBI for the opportunity and confidence shown in us. We are excited to partner with BharatPe to create this new age bank, with a strong team.”

“We are delighted at the opportunity to build a high performing technology led Small Finance Bank serving the payment, investment and credit needs of the under-served. With Centrum as our partner, we are confident that we can create a world-class institution that provides a differentiated and superlative experience to retail customers as well as small businesses,” added Ashneer Grover, CEO and Co-Founder, BharatPe.

Founded in 1997, Centrum has diversified fee businesses and a lending platform for institutions and individuals. Institutional services include Investment Banking, Mid-corporates & SME credit and Broking to FIIs, Pension Funds, Indian Mutual Funds, Domestic Institutions etc. It also provides MSME credit, Wealth Management Services to HNIs and Family Offices, Affordable Housing finance in tier 2 & 3 cities, Micro Finance loans and Retail Broking. Its Asset Management business offers funds across Private Debt and Venture Capital.