Unlisted small finance banks (SFBs) Fincare Small Finance Bank and Suryoday Small Finance Bank have started work on going public, even as their listed peers struggle with listing norms.
So far, three SFBs have listed on the stock markets—Equitas Financial Holdings Ltd, Ujjivan Financial Services Ltd and AU Small Finance Bank Ltd. Of these, Equitas and Ujjivan are holding companies for their respective small finance banks.
In October, the Reserve Bank of India (RBI) asked Equitas and Ujjivan to list their SFB units to comply with its norms, which mandated that a small finance bank must be listed within three years of the launch of operations. Further, it said, the promoter shareholding should be brought down to 40% within five years of launch. For Equitas and Ujjivan, it meant listing their SFBs by September 2019 and January 2020, respectively. In September 2015, RBI issued 10 SFB licences.