Bengaluru-based finetch Slice-backed North East Small Finance Bank (NESFB) has announced the appointment of Satish Kumar Kalra as its interim managing director (MD) and chief executive officer (CEO).
NESFB said that it got approval from the bank's board and the Reserve Bank of India for the appointment. Kalra is a banking veteran with over four decades of experience in the banking industry.
Earlier in October, Slice and Guwahati-based NESFB had announced their intention to merge the two entities, which saw the fintech company becoming an SFB, a first-of-its-kind development in the fintech and banking space.
Kalra was previously working as the MD and CEO of Andhra Bank, where he drove significant growth achieving a 13% compound annual growth rate in credit and added over 1200 branches, a company statement said. According to the company, Kalra's expertise includes credit, treasury and risk management.
As the merged entity looks towards becoming a fintech major with credit ambitions, Kalra's expertise will help the merged entity to be successful in credit distribution to first time borrowers as well as digital first customers.
Slice largely works with college students and new-to-job employees and used to provide them credit and payment services. NESFB has 208 branches across the seven North East states along with West Bengal and has largely focussed on customers from the rural areas and bottom of the pyramid segment.
Kalra is also expected to spearhead the ongoing merger process between Slice and NESFB, while optimising bank operations and ensuring a seamless cultural integration of the two entities, a media statement from the bank said.
Most fintechs business model revolves around lending and the cost of funds become paramount. Becoming a regulated entity that can accept deposits will help Slice to get funds for credit at better rates than most other fintechs and NBFCs.
"Kalra's formidable experience and leadership acumen give us immense confidence in his ability to steer NESFB through the forthcoming changes. His strategic vision aligns perfectly with our goals, and we are eager to witness the innovation and progress he will undoubtedly bring to NESFB," said Tapan Kumar Hazarika, Independent Director, NESFB.
While announcing the merger, Slice had said that the merger will help realise the merged entity’s shared goal of integrating technology with grassroots financial inclusion across the nation.
Kalra said that this was a unique opportunity to be at the helm of what is poised to be a groundbreaking merger in the banking industry. "A cross-cultural collaboration between two entities is set to redefine the financial landscape by leveraging NESFB’s grassroots banking and slice’s digital prowess," he added.
Earlier Slice used to issue prepaid cards with a relatively low credit limit to its young customers and then gradually increase the credit limit as they gain confidence in the customers’ ability to pay back. However, the RBI stopped the company from issuing a credit line on a prepaid card last year. This diktat has up-ended the businesses of several startups that were issuing such cards such as Uni, Jupiter, Fi Neobank and a few others.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
