Business

Shivalik, first UCB to convert into SFB

Shivalik Mercantile Co-operative Bank Limited has become the first urban cooperative bank (UCB) that has been granted ‘in-principle’ permission to convert into a small finance bank by the Reserve Bank of India (RBI).

The move comes after the RBI had announced a scheme on voluntary transition of UCB into a SFB on September 27, 2018.

The ‘in-principle’ approval will be valid for 18 months, within which Shivalik Mercantile Co-operative Bank had to comply with the norms of a SFB.

“On being satisfied that the applicant has complied with the requisite conditions laid down by it as part of ‘in-principle’ approval, the RBI would consider granting it a licence for commencement of banking business as a SFB,” the RBI said.

Shivalik, registered under Multi-state Cooperative Act, has operations in U.P., Delhi, five districts of Madhya Pradesh and two districts of Uttarakhand.

In 2010, Shivalik had acquired Bhoj Nagarik Sahakari Bank Maryadit, located in Dhar district of Madhya Pradesh and Malwa Commercial Coop. Bank Ltd. of Indore in 2012.

The bank has two headquarters, one in Saharanpur and another in Noida - both in U.P.

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Printable version | Feb 22, 2020 1:46:23 PM | https://www.thehindu.com/business/shivalik-first-ucb-to-convert-into-sfb/article30496574.ece

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