The bank had received an in-principle approval from RBI for transitioning to a Small Finance Bank in January 2020 and was given an 18 month timeline to commence business as a Small Finance Bank.
The bank expects to commence business as a Small Finance Bank by April 2021.
“A scheduled commercial banking license will alter our identity significantly allowing us to offer banking services across the country, offer a complete range of retail banking solutions to our customers and further our goal of financial inclusion,” said Suveer Kumar Gupta, MD & CEO of Shivalik Mercantile Cooperative Bank.
The 22-year-old bank has over four lakh customers and a total business size of Rs 1,800 crore as on March 31, 2020. The total advances stood at Rs 719 crore.
“We will now look to grow our current and savings (CASA) book and also raise funds through institutional investors,” said Harsh Mittal, chief financial officer of Shivalik Mercantile Cooperative Bank.
“We will be actively looking to expand in affordable housing, small business and gold loan segment,” he added.
Gupta said that technology adoption will allow the bank to explore previously under explored customer segments and expand across the country without reliance on a physical branch network.