RBI lifts restrictions on Equitas

Subsequent to the listing of equity shares of...ESFB, RBI vide its letter dated November 9, 2020 has acceded to request of the bank for lifting the regulatory restrictions, Equitas Holdings said

New Delhi: Equitas Holdings on Monday said RBI has lifted the restrictions imposed on its small finance bank subsidiary in September last year. The Reserve Bank lifted the restrictions on Equitas Small Finance Bank (ESFB) subsequent to the listing of its equity shares, Equitas Holdings said in a BSE filing.

“Subsequent to the listing of equity shares of…ESFB, RBI vide its letter dated November 9, 2020 has acceded to request of the bank for lifting the regulatory restrictions,” it said.

RBI had restricted ESFB from opening new branches and froze the remuneration of MD&CEO at the then existing level. “In this connection, we accede to your request for lifting the regulatory restrictions imposed on Equitas Small Finance Bank vide our letter dated September 6, 2019,” the RBI letter attached with the filing said.

The shares of ESFB were listed on stock exchanges NSE and BSE with effect from November 2, 2020.

The listing of the banking subsidiary has been in compliance with requirements of guidelines of licensing of small finance bank by RBI, Equitas Holdings said in a filing last week. As per the guidelines, SFBs with net worth of Rs 500 crore have to mandatorily list their shares within three years of starting operations.

However, those below Rs 500 crore net worth can list their shares voluntarily. ESFB started its operations in September 2016. Equitas Holdings stock was trading at Rs 45.05 on BSE, up 0.78 per cent. ESFB was down 0.91 per cent at Rs 32.60.