Equitas Small Finance Bank gets RBI nod to apply for scheme of amalgamation - CNBCTV18

Equitas Small Finance Bank Limited has received permission from the Reserve Bank of India (RBI) to apply for the scheme of amalgamation of Equitas Holdings Limited with the bank, the firm said in a BSE listing on July 10.

The approval of the application would result in the exit of the promoter i.e Equitas Holdings Limited.

“In case of Equitas Small Finance Bank Limited (“the Bank”), our subsidiary for which the Company is the promoter, the said Initial Promoter Lock-in for the Company expires on September 4, 2021. Hence, the Bank had requested RBI if a Scheme of Amalgamation of the Company with the Bank, resulting in exit of the promoter, can be submitted to RBI for approval, prior to the expiry of the said five years, to take effect after the Initial Promoter Lock-in expires,” the company said.

Equitas said the central bank, in a communication to the bank on July 9, permitted it to apply to RBI seeking approval for scheme of amalgamation.

“RBI has also conveyed that any “no objection”, if and when given on the Scheme of Amalgamation, would be without prejudice to the powers of RBI to initiate action, if any, for violation of any licensing guidelines or any terms and conditions of license, or any other applicable instruction,” the company said in the listing.

Equitas added that they would be initiating steps to finalise the Scheme of Amalgamation and submit it to the Boards of the Company and the Bank for approval.

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Equitas Small Finance Bank gets RBI nod to apply for scheme of amalgamation - CNBCTV18
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