What symptoms do merger talks between Clix and Suryoday SFB represent?

The guidelines for on-tap SFB licences have it that an applicant not found suitable for a licence will not be eligible to apply again for three years

Last October, Clix Capital made an attempt to acquire the doddering Lakshmi Vilas Bank (LVB), but lost out to the Singapore-based DBS Bank. Almost a year on, it is in talks to merge with Suryoday Small Finance Bank (SSFB), a listed entity. As platforms, LVB and SSFB could not have been further apart. The point is that Clix, somehow, wants to be part of a banking story — it’s about survival; and is symptomatic of the concerns facing many second-rung shadow banks.

The playfield changed for non-banking financial companies (NBFCs) after the blowout at the Infrastructure Leasing & Financial Services.