The Reserve Bank of India (RBI) has given no-objection for merger of Equitas Small Finance Bank (Equitas SFB) and Equitas Holdings. The RBI no-objection comes with conditions. The merger is being effected to comply with the RBI norms on small finance banks, mandating the promoter to reduce the stake in the subsidiary to 40 per cent within five years of commencement of operations by the SFB (Small Finance Bank).
According to RBI conditions laid down for SFBs in June 2016 and guidelines for licensing of SFBs in private sector in November 2014, equity shares of SFBs should be listed on recognised stock exchange(s) within three years from the date the net worth of SFB reaches Rs 500 crore. In case of Equitas Small Finance Bank, the applicable date for listing was September 4, 2019. However, it commenced its banking operations with a net worth of more than Rs 500 crore.
Equitas Small Finance Bank offers personalised services and helps finds the right product to suit individual banking requirements for their savings.
