Page 8 - Small Finance Banks

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

Small finance banks look to tap Odisha market for growth

Small finance banks (SFBs) have lined up firm plans for Odisha, a state with huge chunk of areas untouched by banking services.These new generation banks are betting big on Odisha as the state is having more than 4200 panchayats where people are deprived of banking services.Suryodaya Small Finance Bank, headquartered in Navi Mumbai, is the first among the small finance banks to start its services in the state by opening a branch here.In Odisha, the new generation bank has approval for opening of another 16 new banking outlets in the next one year. In addition, it will be converting all its 37 micro-finance branches across Odisha into full-fledged banking branches in the next one year.SFBs are offering niche banking services in India. Entities with a small finance bank license can provide basic banking service of accepting deposits and lending.Jana Small Finance Bank is also planning to start its services in Odisha. Its operations in Odisha are likely to start somewhere between ...

Small finance banks to lower deposit rates as pressure on margin mounts

Small Finance Banks, which so long have been defying the trend of falling interest rates and offering as high as 9 per cent interest rates on deposits, are now falling industry lines and reducing interest rates.ESAF, Suryoday, Capital Local Area Bank and Fincare Small Finance Bank are few of the banks looking to reduce interest rates on deposits by at least 25-50 basis points in the next one month. Many small finance banks are increasingly facing stress on margins due to non-payment of dues due to the impact of demonetization last year. However, despite the reduction, the interest rates offered by the SFBs would be about 50-100 basis points higher than that offered by the banks. "We reduced interest rates on deposits by 25-50 basis points recently in different maturities. We will be reducing rates by another 25-50 basis points by December," said R Baskar Babu, MD and CEO, Suryoday Small Finance Bank, which at present is offering interest rate of 8.75 per cent for a period greater ...

Small finance banks raising deposits to replace high-cost loans

In addition, the new-age banks are betting big on technology to reduce the cost of operations