Small Finance Banking

This smallcap payments bank has zoomed 57% in 6 wks; trades below IPO price

Fino Payments Bank surged 8 per cent on the BSE to hit an over two-year high of Rs 449.95 in Thursday's intra-day trade.

Small Finance Banks' loan growth to lower to 25-27% in FY25: CRISIL Ratings

Small Finance Banks' (SFBs) loan growth will moderate to 25-27 per cent in FY25 against 28 per cent in FY24, a domestic rating agency said on Monday. Crisil Ratings said though a tad lower, the advances growth will be robust and driven by factors like segmental and geographical expansion by the entities. While capital buffers remain healthy, SFBs will face challenges in mobilising deposits and their costs and will explore alternative, non-deposit avenues to fund credit growth, the agency said. The asset growth will be driven by traditional microlending being the most popular and new ones like mortgages, small businesses or even unsecured loans. "Credit growth in new asset classes is seen at 40 per cent this fiscal, while that in traditional segments will be 20 per cent," its senior director Ajit Velonie said. He added that the share of new asset classes will cross 40 per cent by the end of March 2025 on the back of the faster growth and underlined that most of the asset ...

DLF-GIC JV firm DCCDL's office rental income rises 11% to Rs 942 cr in Q1

Realty firm DLF's rental arm DCCDL has posted an 11 per cent annual increase in office rental income to Rs 942 crore during the first quarter of this fiscal on better demand for its premium workspace. DLF Cyber City Developers Ltd (DCCDL) is a joint venture between DLF and Singapore sovereign wealth fund GIC. DLF holds a 66.67 per cent stake, while the GIC has a 33.33 per cent stake in DCCDL. According to the latest investor presentation, DCCDL's rental income from office buildings rose to Rs 942 crore during the April-June period of the current fiscal from Rs 851 crore in the year-ago period. The rental income from retail real estate space grew 9 per cent to Rs 210 crore in the first quarter of this fiscal from Rs 192 crore a year ago. On the commercial real estate segment, DLF said it has achieved "double-digit rental growth through organic growth and new developments". "Significant increase in retail presence; portfolio to grow to 2 times in the next 4-5 years," it added. DLF

WestBridge Capital sells 1.7% stake in AU Small Fin Bank for Rs 845 cr

Private equity firm WestBridge Capital divested on Wednesday a 1.7 per cent stake in the AU Small Finance Bank for Rs 845 crore through an open market transaction. WestBridge Capital, through its affiliate Westbridge AIF I, sold shares of the Jaipur-based AU Small Finance Bank through a bulk deal on the National Stock Exchange (NSE). As per data available, Westbridge AIF I offloaded 1.30 crore shares, amounting to a 1.75 per cent stake in AU Small Finance Bank. The shares were disposed of at an average price of Rs 650.08 apiece, taking the transaction value to Rs 845.10 crore. After the stake sale, the shareholding of WestBridge Capital in the AU Small Finance Bank has declined to 2.07 per cent from 3.82 per cent. Meanwhile, Goldman Sachs Investments Mauritius I picked up 43.34 lakh shares of the AU Small Finance Bank at an average price of Rs 650 per piece. This took the deal value to Rs 281.71 crore. Details of other buyers of the AU Small Finance Bank shares could not be ...

Capital SFB aims to comply with conversion norms in 12-18 months

Capital SFB is not yet eligible to apply for a conversion to a universal bank because of net non-performing ratio

RBI monetary policy review: Bulk deposits limit for banks may be raised

The limit for bulk deposits was increased in 2019 for SCBs and SFBs as "single rupee term deposits of Rs 2 crore and above" from Rs 1 crore

Why small finance banks are in no hurry to become universal banks

The fear of rejection is real. Many of the SFBs are listed on the exchanges. They are aware that no new universal bank licence has been granted in the last 10 years

Cosmos Co-operative Bank halts acquisitions; targets organic growth

So far, the bank has merged 18 small co-operative banks into itself

Have no immediate requirement to be a universal bank: Suryoday SFB MD & CEO

Ramachandran says it is at least two years before the lender considers becoming a universal bank

RBI approves appointment of Sanjeev Nautiyal as MD&CEO of Ujjivan SFB

Third CEO in five years; current CEO Davis to be relieved early

AU Small Finance Bank stock rallies over 6% on universal banking hopes

The central bank has laid down qualitative criteria of a satisfactory five-year track record, which will be evaluated post-application made by SFBs

AU Small Finance Bank eligible for universal banking licence application

AU Small Finance Bank has recorded profits for the previous two fiscal years, and maintained gross and net non-performing assets below 3% and 1%, respectively, as mandated by the RBI

Street Signs: SFBs dive into universal banking waters, Sebi's blank canvas

SFBs will remain in focus in Monday's trade after the RBI issued guidelines for their conversion into universal banks

AU Small Finance Bank's Q4 net profit dips by 13% to Rs 371 crore

The numbers are not strictly comparable as Fincare SFB was merged with AU SFB in the Jan-March quarter

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