Page 2 - Small Finance Banking

Cautious approach: Small finance bank model in the slow lane, say experts

Unity Small Finance Bank was the last one to get a licence in the category in November 2021

RBI rejects two more applications for setting up small finance banks

So far, the regulator has received 13 applications to set up banks under the guidelines for 'on tap' licensing of Universal Banks and Small Finance Banks

SFBs seek glide path from RBI to become universal banks citing eligibility

Lower priority sector lending norms would help in reducing cost

Sidbi plans to raise Rs 5,000 cr via rights issue next financial year

Small Industries Development Bank of India (SIDBI) on Tuesday said it plans to raise Rs 5,000 crore from rights issue next financial year to fund business growth. The refinancing entity for SME finance is witnessing a strong credit growth and to further grow the business, capital would be required, he said. The bank is looking to mobilise Rs 5,000 crore from rights issue in the next fiscal, SIDBI chairman and managing director S Ramann said on the sidelines of launch of a credit programme for Jan Aushadhi Kendras here. He said the government is the biggest shareholder and SIDBI has approached them requesting their participation in the rights issue, he said. Government of India holds a 20.85 per cent stake as of March 31, 2023. Besides this, State Bank of India owns 15.65 per cent, while the share of Life Insurance Corporation of India (LIC) stood at 13.33 per cent as of March 31, 2023. The rest is held by other Public Sector Banks (PSBs) and institutions. He said the loan book of

AU Small Finance Bank rules out further hike in interest rates on deposits

Fincare SFB is slated to merge with AU SFB from April 1, 2024

Fincare Small Finance Bank merger with AU SFB gets RBI approval

To function as combined entity from April 1, 2024

A rethink on priority sector norms for SFBs can be helpful: ASFBI CEO

The Report on Trend and Progress of Banking in India (FY23) notes that some microfinance institutions among SFBs earlier retained their business models

Sidbi commits over Rs 100 cr for entrepreneurship projects in Nagaland

SIDBI has entered into an agreement with the Nagaland government, committing over Rs 100 crore for entrepreneurship projects in the northeastern state. Small Industries Development Bank of India (SIDBI) is the apex regulatory body for overall licensing and regulation of micro, small and medium enterprise finance companies in India. It is under the jurisdiction of the Ministry of Finance. SIBDI Chief General Manager Subhransu S Acharya, during an event on Tuesday night, said it would fund four projects, including setting up of industrial infrastructure for MSMEs under cluster development fund and Swavalamban Connect Kendras (SCK) for all the 16 districts to boost the spirit of entrepreneurship. SIDBI also announced sports scholarships of Rs 5 lakh each for the training of five promising sportspersons. It would also provide seed funds to support the entrepreneurs in their startup journey. Nagaland Advisor for Industry and Commerce Hekani Jakhalu Kense and SIDBI Chairman and Managing

Capital Small Finance Bank fixes Rs 445-468 as price band for its IPO

Capital Small Finance Bank on Friday fixed Rs 445-468 per share as the price band for its Rs 523-crore initial public offer opening on February 7. The issue consists of Rs 450 crore of fresh issue and the remaining Rs 73 crore of offer for sale through which promoters and external investors will dilute 5 per cent of their pre-issue holdings. The Jalandhar-based bank, which began operations in 2016 after converting itself from a local area bank, is 24 per cent owned by the promoter family led by Sarvjit Singh Sarma and his family, which will come down by to 18.4 per cent post issue, its managing director and chief executive Sarma told PTI here. Oman India Joint Investment Fund II is the single largest external shareholder in the bank, with a 9.5 per cent stake, which will sell its 20 per cent or 8,36,728 shares of its pre-issue holding. External investors own 40 per cent of the bank. American Capital, which owns 5 per cent, will divest 10 per cent or 1,51,153 equity shares, and Amic

Account holders in suspended bank should be refunded fast: AIMIM MP Jaleel

AIMIM Lok Sabha member Imtiaz Jaleel has said the government should speed up the process of returning the money of account holders of the Adarsh Mahila Nagari Sahakari Bank, whose license has been cancelled by the Reserve Bank of India. Talking to reporters on Tuesday, Jaleel claimed funds of around Rs 1,000 crore of nearly 10 lakh account holders were stuck in 10 different financial institutions. "The Adarsh Bank's properties have been seized but not yet sold. The government should take the ownership of these assets and give with pending amounts of the account holders. This process should be expedited," the MP from Chhatrapati Samabhjinagar said and handed over a memorandum of his demand to the divisional commissioner. The RBI last year imposed several restrictions on five cooperative banks, including the Adarsh Mahila Nagari Bank in Maharashtra's Chhatrapati Sambhajinagar, in view of the deteriorating financial condition of the lenders.

RBI revise guidelines for SFBs, raise min capital requirement to Rs 200 cr

The Reserve Bank on Monday raised the minimum capital requirement for small finance banks to Rs 200 crore and permitted Payments Bank to upgrade as SFBs. Incidentally, the net worth of all SFBs currently in operation is in excess of Rs 200 crore. Issuing the revised guidelines, the Reserve Bank said that for Primary (Urban) Co-operative Banks (UCBs) desirous of voluntarily transiting into SFBs, the initial requirement of net worth would be at Rs 100 crore, which will have to be increased to Rs 200 crore within five years from the date of commencement of business. Payments Banks can apply for conversion into SFB after five years of operations if they are otherwise eligible as per the guidelines, it said. Meanwhile, Fino Payments Bank, in a statement, said the bank has already applied for an SFB licence as per regulatory guidelines on Payments Bank conversion to SFB. The regulator is examining the application and awaiting further comments from the RBI as per the process, Fino ...

AU Small Finance Bank's advances rise 20% to Rs 67,624 cr in Q3FY24

According to the exchange filing, advances rose by 4 per cent sequentially from Rs 65,029 crore

RBI flags contagion risks on SFBs for high reliance on co-op banks deposits

"Lack of asset diversification coupled with geographical concentration"

S K Kalra appointed interim MD & CEO of North East Small Finance Bank

The Reserve Bank of India and the board of NESFB have approved the appointment of Kalra, a former managing director of Andhra Bank

Fincare Small Finance Bank hikes interest on savings account to 7.5%

The interest rates on savings accounts of Fincare Small Finance Bank range from 3.51 per cent to 7.50 per cent

ESAF Small Finance Bank shares gain 15% during stock market debut

The company's initial public offering (IPO) had seen demand 73 times more than the shares on offer

SFBs can turn into universal banks, say experts at BS BFSI Summit 2023

There is nothing to stop our firm from turning into a Universal Bank, said Ittira Davis, managing director and chief executive officer of Ujjivan Small Finance Bank

Some NBFCs are bigger than many banks, says CEO Aditya Birla Finance

"There is a harmonisation of policies and regulations for upper-scale NBFCs and banks in terms of capital requirements and asset categorisation," Rakesh Singh of Aditya Birla Finance said

Fincare SFB to merge with AU Small Finance Bank in all-share deal

At present, AU's market capitalisation is Rs 46,000 crore, the highest among small finance banks. The market capitalisation of the merged entity will be slightly over Rs 50,000 crore

Banks offering up to 9 per cent interest: Top fixed deposit rates right now

Unity Small Finance Bank offers 9.5 per cent interest rate on senior citizens fixed deposit for 1001 days tenure as of October 25, 2023