Page 4 - Small Finance Banks

SFBs slow in MUDRA credit offtake in Odisha, extend just 2% of total loans

Have disbursed just Rs 135 cr out of a total assistance of Rd 6,492 cr; Private sector lenders eclipse all banks

With 'restrictive' norms, not many takers for small finance bank licences

Word is out that there will be relatively few takers for SFB licences compared to the 72 applicants who lined up in February 2015

SFBs need to widen deposit base by Rs 60,000 crore in 2 yrs: Report

Granular deposits, which are current and savings deposits and retail term deposits, accounted for 48 per cent of total deposits in FY19

Co-op banks may come under banking act, forced conversion not ruled out

In the revised scheme, the inspection of the UCBs solely under the Banking Regulation Act will be done by the central bank

Payment Banks can become SFB after five years under new RBI norms

SFBs will at once be identified as scheduled banks and can open branches immediately

Oman India Joint Investment Fund II buys 9.9% in Capital SFB for Rs 84 cr

The current round of fundraising will help the bank deepen its penetration in Punjab and expand into Haryana, Rajasthan and NCT of Delhi, with a significant focus on MSME loans

Small finance banks lag in opening Jan Dhan Yojana accounts in Odisha

This is despite their strong branch network and plans to expand retail banking operations; PSB lead race, accounting for 70% of such accounts opened in the state

Equitas appoints JM Financial, Edelweiss, and IIFL for IPO of SFB unit

The firm is targeting an issue size of Rs 1,500-2,000 crore and may file its offer document with markets regulator Securities and Exchange Board of India (Sebi) in a few weeks

On-tap licence regime: RBI doubles SFB net worth floor to Rs 200 crore

RBI has stated that the key criteria for licences will be the entity's ability to serve smaller customers

Why the worst may not be over yet for investors of Equitas Holding

Shareholders are vulnerable to deep 'Holding company' discount, risk of further stake dilution and possible moderation in return ratios

Equitas considering two routes to get its SFB listed by March 2020

RBI last week refused to extend the listing deadline for ESFB and barred it from opening new branches till further orders

Game-changers? Small finance banks fail to make a dent in banking space

The latest available RBI consolidated data tells us that in FY18, these banks reported positive earnings before provisions and taxes, but high provisioning on account of the elevated

RBI turns down small finance banks' request to dilute listing norms

Regulator says any such move could be seen as easing licensing terms for these banks

Small finance banks seek equity investment to fund non-MFI portfolio

According to the Reserve Bank of India guidelines, SFBs need to be listed within three years after reaching a net worth of Rs 500 crore

Small finance banks likely to witness some margin pressure, say analysts

While rising non-micro book improves asset quality outlook and capital adequacy, it would weigh on overall yields, say analysts

SFBs may grow at 30% over medium-term, need Rs 6,000cr capital by FY2

These banks have witnessed growth in assets under management, deposits, and better return on their equities, besides mitigating business risks through diversification

From Ujjivan to Suryoday, small-finance banks to hire 5,000 staff by March

These small-finance banks require a new pool of talent for diversification

Investors bet on small finance banks as financial inclusion makes way

High growth, certainty of exits attract PE firms

SFBs look to grab bulk deposits pie; offer higher interest rates at 8-8.5%

Most SFBs have been offering competitive rates for term deposits in retail but the response has been tepid

More upside likely for small finance banks; Ujjivan, Equitas stock jump

Transition to low-cost deposits will help improve margins, though some of this benefit might be offset by rise in expansion-related costs