Equitas Holdings Surges As RBI Grants Small Finance Bank Licence

Shares of Equitas Holdings surged as much as 7.87 per cent to hit intraday high of Rs 191.70 after the microfinance player said that Reserve Bank of India has issued it the final licence for starting small finance bank operations. 

Equitas Holdings in a statement issued to the BSE said, "This is to intimate that the Reserve Bank of India has issued licence no. MUM:119 dated June 30, 2016 to Equitas Small Finance Bank Limited to carry on the Small Finance Bank (SFB) operations in India subject to the terms and conditions stipulated in its letter dated June 30, 2016."

Equitas Holdings said that there are a few other "approvals to be obtained from various departments of RBI and other agencies. On receipt of these approvals, Equitas Small Finance Bank Limited will commence its operations."

In September last year, the Reserve Bank of India had granted in-principle licence to Equitas Holdings to open small finance banks.

A small finance bank will primarily undertake basic banking activities of acceptance of deposits and lending to un-served and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.

There will not be any restriction in the area of operations of small finance banks.

The Chennai-based microfinance player made its debut on stock exchanges on April 21, 2016 and since then the shares of Equitas Holdings have gained 74 per cent on the NSE.

Shares of Equitas Holdings ended 3.4 per cent higher at Rs 183.75.