SFBs likely to tweak shareholding pattern ahead of listing deadline

After five years of operations as SFBs, RBI norms allow the SFBs to go for reverse merger

Small finance banks (SFBs), a majority of which are opting for a holding company structure for their banks, are now required to tweak their shareholding patterns for the bank's listing.

The fact that the SFBs would need to list the banks, rather than their holding companies, was highlighted by recent examples of Ujjivan and Equitas. The two SFBs had listed the holding companies of the SFBS in 2016. However, RBI asked the two entities to list the banks directly for meeting the banking regulations. RBI regulations say that the SFBs need to be listed in stock exchanges within three years