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Equitas Small Finance to list bank unit separately as ordered by RBI

Updated : October 26, 2018 10:19 AM IST

The Reserve Bank of India (RBI) has ordered that promoters of small finance banks must list their banking units separately within three years of operation.

Discussing its impact, PN Vasudevan, managing director of Equitas Small Finance Bank, said, “The original guideline is that we were supposed to list the bank in a period of three years ... so we have about a year’s time and we reached out to RBI well in advance whether the holding company is required to hold the shares of the bank at least 40 percent for five year lock-in period," he said.

“We are required to dilute up to 60 percent within the five-year period because the holding company should not own more than 40 percent in the bank by the end of the fifth year. So we have a board meeting coming up where we will be considering, which is the right route to take keeping all stakeholders interest in mind,” he added.
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