Shivalik Mercantile Co-operative Bank has commenced operations as a small finance bank with effect from April 26, 2021, says RBI in a press release. It is the first UCB which has migrated to the new platform of Small Finance Bank despite facing opposition from the UCB fraternity.
A Rs 2000 crore bank, Shivalik now aims to grow three times to Rs 6000 crore in a time length of four years, claimed its CEO Suveer Kumar Gupta, quotes PTI. Uttar Pradesh based bank has 31 branches and 57 ATMs.
The UCB was granted an in-principle approval for transition into a small finance bank, under the “Scheme on voluntary transition of Urban Co-operative Bank into a Small Finance Bank” issued on September 27, 2018.
The bank was given an 18-month timeline to commence business as a Small Finance Bank and it was expected to commence business as a Small Finance Bank by April 2021, which it has done now.
Despite NAFCUB dwelling on the perils of converting into a small finance bank during its AGMs and otherwise, Uttar Pradesh-based UCB decided to become an SFB.
Commenting on this, Suveer Kumar Gupta, MD & CEO of now rechristened Shivalik Small Finance Bank Limited said, “It is an honour for Shivalik to be the first UCB in India to transition to a Small Finance Bank.”
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 the CEO.
“With a rich 22-year banking heritage and experience, Shivalik is well placed to significantly benefit from becoming a Small Finance Bank. Our vision is to build a new age bank which is digital first and customer oriented at its roots”, he stated.
Shivalik can rapidly innovate and rollout highly personalized products and services for its customers through its advanced technology platforms including the ability to implement Open Banking, and easily collaborate with the external ecosystem, including fintechs, digital businesses and non-banking financial service providers, claimed the CEO.