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Informist, Monday, Oct. 27, 2025

 

--RBI: VFS Capital withdraws application to get licensed as small finance bk 

 

NEW DELHI – VFS Capital Ltd. has withdrawn its application for a small finance bank license, the Reserve Bank of India said Monday. The company had applied for a small finance bank license in the December quarter last year. 

 

VFS Capital, formerly known as Village Financial Services, is the first microfinance company in the eastern region to have a non-bank finance company status registered by the RBI. The lender offers loans through joint liability groups and to micro, small, and medium enterprises, according to its website.

 

The Kolkata-based non-bank lender reported a net profit of INR 160.5 million in 2024-25 (Apr-Mar), down from INR 229.4 million in FY24. VFS Capital had 284 branches and a loan book of INR 9.42 billion as of March 2022, according to the website.

 

According to RBI guidelines, to transition to a small finance bank, a non-banking finance company, or a microfinance institution must have a minimum net worth of INR 2 billion or must infuse additional paid-up capital within 18 months of the in-principle approval or as on the date of commencement of operations. They should also have a successful track record of running their businesses for at least five years.  End

 

Reported by Shubham Rana

Edited by Saji George Titus

 

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