Equitas’ request for extension of listing deadline rejected

The Reserve Bank of India has denied a request by Equitas Small Finance Bank (ESFB) to extend the deadline for listing on the bourses.

Since the small finance bank has already missed the deadline, the central bank has also barred it from opening new bank branches and has frozen the remuneration of its Managing Director and CEO PN Vasudevan at the current level.

“It is advised that your request for extension of timeline for listing of share of ESFB cannot be acceded to,” the RBI has informed the bank in a letter.

The disclosure was made by Equitas Holdings in a regulatory filing on Friday.

Chennai-headquartered Equitas SFB commenced operations on September 5, 2016. It was expected to complete listing of its shares on or before September 4.

“Listing of SFBs within three years of reaching net worth of ₹500 crore is mandatory...This has also been communicated to the bank through various correspondence on this issue in the past,” the RBI said, adding that regulatory restrictions have been placed on the bank with immediate effect as it is in violation of the listing guidelines.

It has also warned that further restrictions may be imposed if the bank fails to make satisfactory progress towards listing of its shares.

At present, Equitas SFB is a wholly-owned subsidiary of Equitas Holdings, which is a listed entity. Equitas Holdings is a Non-Deposit Taking Systemically Important - Core Investment Company registered with the RBI. The bank had sent two letters to the RBI – on June 1 and August 5 this year – seeking extension of timeline for listing.

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