RBI lifts curbs on Equitas SFB

NEW DELHI: The Reserve Bank of India (RBI) has lifted the restrictions on Equitas Small Finance Bank (ESFB) with regard to opening of branches and remuneration freeze of MD & CEO at the then existing level, Equitas Holdings Ltd said in a communication to stock exchanges. The restrictions on the small finance bank were removed subsequent to the listing of its equity shares earlier this month.  

“RBI vide its letter dated Nov 9, 2020 has acceded to request of the bank for lifting the regulatory restrictions,” the lender said. The shares of Equitas were listed on stock exchanges NSE and BSE with 
effect from Nov. 2, 2020. The listing of the banking subsidiary has been in compliance with requirements of guidelines of licensing of small finance bank by RBI, Equitas Holdings said in a filing last week.

As per the guidelines, SFBs with net worth of Rs 500 crore have to mandatorily list their shares within three years of starting operations. However, those below Rs 500 crore net worth can list their shares voluntarily. The bank started its operations in September 2016.

Net profit for Equitas Small Finance more than doubled to Rs 103 crore for the quarter ending September. It was Rs 49 crore in the year-ago period. The bank said disbursements during the quarter were at 80 per cent. Net interest income rose 32 per cent to Rs 461 crore as against Rs 351 crore in September 2019, the bank added.