The bank intending to transit must have their shares listed on a recognized stock exchange.
New Delhi: The Reserve Bank of India (RBI) has set out certain provisions fulfilling which Small Finance Banks (SFBs) can voluntarily convert themselves into Universal Banks.
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Such conversion shall be subject to the fulfilling net worth requirement as applicable to Universal Banks, a satisfactory track record of performance for a minimum period of five years, and RBI’s due diligence exercise.
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The bank intending to transit must have their shares listed on a recognized stock exchange; have a minimum net worth of Rs 1,000 crore as at the end of the previous quarter (audited); and have a net profit in the last two financial years; among others.
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The eligible Bank will have to furnish a detailed rationale for such a transition, RBI said.
