Fintech startup slice-backed North East Small Finance Bank (NESFB) has appointed former Andhra Bank executive Satish Kumar Kalra as its interim managing director (MD) and chief executive officer (CEO).
In a statement, the bank said that it has already received approval from the Reserve Bank of India (RBI) and the company’s board for the appointment.
This comes a couple of months after slice and the Guwahati-based bank announced plans to merge the two entities.
As part of his responsibilities, Kalra will spearhead the ongoing merger process between slice and NESFB.
With four decades of experience under his belt, he will also look to optimise the bank operations and ensure a ‘seamless cultural integration’ of the two entities.
Commenting on his appointment, Kalra added, “I am deeply honoured to assume this role. This is 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 set to redefine the financial landscape by leveraging NESFB’s grassroots banking and slice’s digital prowess.”
In his new role, Kalra will also steer the bank towards growth and stability. He will make sure that the bank’s strategic growth and business directives are in line with governance and regulatory standards.
The consolidated entity will also leverage his expertise to enhance branch management and bolster the bank’s asset base to fuel operations.
“We are at a pivotal juncture in our journey, and the appointment of Mr Satish Kumar Kalra as Interim MD & CEO stands testament to our commitment towards excellence and sustainable growth… 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 the bank’s independent director Tapan Kumar Hazarika.
An alumnus of Kurukshetra University and a Certified Associate of the Indian Institute of Banker (CAIIB), Kalra has also served Andhara Bank as its MD, CEO (incharge) and executive director. He was responsible for driving growth in credit disbursals and branch additions.
His areas of expertise include treasury management, non-performing asset (NPA) credit management, and risk management. In his previous stints, Kalra also served in various roles at PNB GILTS, Indbank Merchant Banking Services, JK Cement, and Can Fin Homes, among others.
With this, the stage has been set for slice’s merger with the Guwahati-based small finance bank. The RBI accorded its approval to the proposal for the merger in October, months after the fintech startup picked up a 5% stake in the bank for $3.42 Mn (INR 28 Cr).
In October, slice had said that the move would enable the consolidated entity to expand tech-enabled financial accessibility nationwide.
However, the merger will enable the fintech startup to acquire an SFB licence and weather the regulatory uncertainty that plagues the larger fintech sector. In addition, the move will pave the way for slice to bolster its credit and banking ambitions as regulated entities have access to funds (via customer deposits) for credit at a better rate than most fintechs and NBFCs.
The move especially bodes well for slice whose business model was rendered pointless after RBI’s diktat on PPI last year. While the company pivoted, the merger will enable it to largely subvert any such regulatory storm while scaling up.
This comes close on the heels of the fintech startup raising INR 75 Cr from Stride Ventures in a debt funding round.
slice clocked a net loss of INR 405.8 Cr in the financial year 2022-23 (FY23), up 60% from INR 253.7 Cr in FY22.
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