Centrum to merge Micro credit, SME biz with small fin bank for Rs 426 cr

The transfer, via a slump sale is subject to shareholders, statutory and regulatory approvals. Centrum has indicated the transaction would be completed in two months

Centrum Capital Ltd will merge the SME lending business and micro-credit operations of group with the proposed Small Finance Bank for consideration of Rs 426 crore. These businesses are run by two subsidiaries.

In June 2021, The Reserve Bank of India (RBI) gave “in-principle” nod to Centrum Financial Services Ltd (CFSL) to set up SFB). The proposed bank is will take over the beleaguered Punjab and Maharashtra Cooperative Bank (PMC Bank).

Centrum Capital in filing with BSE said its board has approved the transfer business of wholly-owned material subsidiaries - Centrum Financial Services and Centrum Microcredit - to its proposed