Page 9 - Small Finance Banks

Proposed branch definition poses challenge for SFBs

The proposal to widen the definition was recently mooted by RBI

Overseas investors max out investments in Equitas, Ujjivan

The IPO of small finance bank licensees had created legroom for FPI investments

Small finance banks see spurt in valuations

Valuations of the proposed SFB have gone up by almost 50-60% in the past year

Small finance banks to woo depositors with better rates

Small savers are likely to gain from competitive rates expected to be offered by these banks

Proposed small finance banks opt for holding firm

According to RBI norms, the promoter's minimum initial contribution to the paid-up share capital of an SFB should be at least 40 per cent

Small finance banks expect relaxation in branch norms

Proposed banks want to work in hub-and-spoke model, with permission to convert some of offices into customer service centres

India's first small bank to start operations on April 13

Jalandhar-based Capital Local Area Bank currently active as local area bank