Small finance banks gain as RBI allows promoters to apply fo

Small finance banks gain as RBI allows promoters to apply for reverse merger


Shares of SFBs rise after RBI directive
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Shares of small finance banks (SFBs) surged on Monday after the central bank allowed them to apply for amalgamation with the promoter entities on completing five years of operations.
On Saturday, Equitas Holding Ltd and Ujjivan Financial Services said they would initiate steps following the Reserve Bank of India’s (RBI’s) approval to file for a scheme of amalgamation of the promoter entity with the respective SFBs.
Ujjivan Financial Services Ltd and Equitas Holding Ltd surged up to 20% each in early trade on Monday. Equitas SFB gained 7.3% while Ujjivan SFB climbed 1.5%.

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