Uttar Pradesh-based Shivalik Mercantile Co-operative Bank (SMCB) on Wednesday said it has received a license from the Reserve Bank of India (RBI) as a Small Finance Bank (SFB).
With this, SMCB becomes the first Urban Cooperative Bank (UCB) in the country to make a transition to a SFB under the voluntary transition scheme. The bank expects to commence business as a SFB by April 2021.
“The bank had received an in-principle approval from RBI for transitioning to a Small Finance Bank in January 2020 and was given an 18 month timeline to commence business as a Small Finance Bank. With today’s announcement, the bank is on track to achieve this much earlier than expected,” the Bank said in a statement.
SMCB is currently a multi-state UCB with an area of operation in Uttar Pradesh, Delhi, and parts of Madhya Pradesh and Uttarakhand. The Bank currently has 31 branches and 4 business correspondent offices.
As on 31 March 2020, the total business size of the bank was approximately ₹1,800 Crore, the statement said.
In a message to customers, Suveer Kumar Gupta, MD & CEO, said the Bank envisages a host of benefits to customers on transition to a SFB, including opening branches across the country; offering competitive rate of interest on home loans since the Bank will become eligible for refinancing facility from government institutions; acceptability of Bank Guarantees and Fixed Deposits offered by the Bank in government organisations.