Shivalik Small Finance Bank (SSFB) has received a license from Reserve Bank of India (RBI) to carry on banking business as a Small Finance Bank (SFB) in India.
The licensure effectively completes the transition of Shivalik Mercantile Co-operative Bank (SMCB) to an SFB.
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SMCB is the first Urban Cooperative Bank (UCB) in India to transition to a Small Finance Bank under the voluntary transition scheme.
With this, SMCB becomes the first Urban Cooperative Bank (UCB) in the country to make a transition to a SFB under the voluntary transition scheme. The bank expects to commence business as an SFB by April 2021.
A multi-state bank in full expansion
“The bank had received an in-principle approval from RBI for transitioning to a Small Finance Bank in January 2020 and was given an 18-month timeline to commence business as a Small Finance Bank. With today’s announcement, the bank is on track to achieve this much earlier than expected,” the Bank said in a statement.
SMCB is currently a multi-state UCB with an area of operation in Uttar Pradesh, Delhi, and parts of Madhya Pradesh and Uttarakhand. The Bank currently has 31 branches and 4 business correspondent offices.
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By GlobalDataAs on 31 March 2020, the total business size of the bank was approximately Rs 1,800 Crores (£181m), the statement said.
Now eligible for government financing facility
In a message to customers, Suveer Kumar Gupta, MD & CEO, said the Bank envisages a host of benefits to customers on transition to an SFB, including opening branches across the country.
