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. 

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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).