Ujjivan to transform into small finance bank

Ujjivan, has submitted an application to the Reserve Bank of India on August 18 for grant of a banking licence to its subsidiary Ujjivan Small Finance Bank Ltd. 

Under the terms of Section 22 of the Banking Regulation Act, 1949, the micro finance service company sought to convert their wholly owned subsidiary into a small finance bank.

“The said application has been made in pursuance of the in-principle approval dated October 07, 2015, granted to the Company by the Reserve Bank of India, permitting the Company to establish a small finance bank in the private sector,” the company said in a statement.

In May, Ujjivan Financial Services trimmed its foreign shareholding by listing into stock market as the RBI guidelines mandates not more than 49% holding by them to become eligible for running a small finance bank, PTI story reported.

Shares of the company closed 0.41% down at Rs 449.05 per share on Bombay Stock Exchange (BSE).