Equitas Holdings confident of listing small finance bank by March
RBI had imposed regulatory action, restricting remuneration of MD&CEO and putting a cap on branches.
RBI had mandated as part of a licence to Equitas to run a small finance bank that it should list the entity within three years from the day it commenced operations. The date ended on September 6 this year. RBI had taken regulatory action on the bank by restricting opening new branches and put a cap on the remuneration of the MD & CEO PN Vasudevan. " Subsequently, the Board of Directors of the Bank on September 10. 2019 has approved an initial public offer and listing of the equity shares on stock exchanges in India, to comply with the licensing guidelines. Having regard to the forgoing, the management is confident of listing of the shares of the Bank by March 31, 2020," said the press release.
Equitas had earlier said it had a Scheme of Arrangement through which shareholders of the holding company would shares in the small finance bank, "without cash consideration." The scheme required approvals from SEBI, RBI, NCLT, Shareholders and creditors. However, soon after, Equitas told shareholders that SEBI had not approved of the scheme.
In its second quarter results, Equitas Holdings posted total incme of Rs 704 crore against Rs 591.7 crore and PAT of 41.4 crore against 51.3 crore in the same fiscal last year.