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Shivalik Small Finance Bank, first cooperative lender to get SFB licence, starts operations

SSFB currently serves 400,000 customers through its 31 branches and over 250 banking agents. Until March 31, 2020, the bank's total deposit base stood at Rs 1,140 crore and total advances at Rs 719 crore.

April 26, 2021 / 04:40 PM IST
Shivalik Mercantile Co-operative Bank. (PC-ANI)

Shivalik Mercantile Co-operative Bank. (PC-ANI)

The Reserve Bank of India (RBI) on April 26 said Shivalik Small Finance Bank has commenced operations as a small finance bank with effect from April 26, 2021. The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India, the RBI said.

Shivalik Mercantile Co-operative Bank Limited was granted in-principle approval for transition into a small finance bank on January 6, 2020, under the “Scheme on voluntary transition of Urban Co-operative Bank into a Small Finance Bank” issued on September 27, 2018.

Thus, it has become India's first urban co-operative bank (UCB) to transition to a Small Finance Bank (SFB). The in-principal approval gave SMCB 18 months' time to commence the business.
As per the scheme, the minimum net worth of the proposed SFB was set at Rs 100 crore and the minimum capital adequacy ratio of 15 percent from the date of commencement of business.

According to its annual report, Shivalik Mercantile Cooperative Bank’s net worth stood at Rs 77.21 crore and the capital adequacy ratio was at 13.07 percent as on March 2019.