Govind Singh, MD and CEO, Utkarsh Small Finance Bank
Utkarsh Small Finance Bank on Wednesday informed stock exchanges that passed a resolution for a reverse merger between holding company Utkarsh Core Invest (UCL) and the bank. The UCL board has proposed taking steps towards this, subject to bank approval. concerned authorities.
“We hereby inform that Utkarsh Small Finance Bank Limited (“USFBL” or “the Bank”) has received a notice from UCL dated February 14, 2024 stating that a resolution has been passed by the Board of Directors of UCL on February 13. , 2024, whereby UCL has proposed to take steps in furtherance of a proposed reverse merger (“Proposed Merger”) of UCL with the Bank, subject to receipt of requisite corporate, regulatory and statutory approvals and any other approvals as may be applicable could be, by both UCL and the Bank.”
The reverse merger is proposed to comply with the statutory provision in the Reserve Bank of India guidelines on acquiring and holding of shares or voting rights in banking companies dated January 16, 2023, which require the promoter to dilute its shareholding to 26 within 15 years per cent. from the date of commencement of banking activities that the company intends to achieve through this process.
The bank said it has noted the proposal and that the lender’s Board of Directors will meet in due course and evaluate the proposal and other options to achieve regulatory compliance, taking into account the interests of the Bank and its stakeholders.
The lender’s net profit rose 23 percent year-on-year (year-on-year) to Rs 116 crore in Q3FY24 and net interest income (NII) stood at Rs 413 crore, 22.6 percent higher than the same period a year ago.
First print: February 15, 2024 | 1:06 am IST