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Ujjivan Small Finance Bank Ltd, a wholly-owned subsidiary of Ujjivan Financial Services Ltd, has been given scheduled bank status by RBI.
Ujjivan SFB commenced its operations as a Small Finance Bank with effect from February 1, 2017. Currently, Ujjivan SFB has 65 full-fledged brick and mortar branches in eight states and two Union Territories. It plans to convert 160 existing branches and 29 new Unbanked Rural Centres (URCs) by the end of FY 2017-18 and the remaining branches will be converted over a period of two years in line with RBI approval.
Commenting on the development, Samit Ghosh, MD & CEO of Ujjivan SFB said, “This is an important milestone in our journey to transform from a microfinance company to a Small Finance Bank. It completes the transition phase, which started over two years ago, and provides the final seal of approval from the Reserve Bank of India in setting up the Small Finance Bank. This status will enhance the market acceptability of the bank in its effort to garner institutional deposits at a competitive price and participate more actively in the inter-bank market. It also opens the door for issuing Certificates of Deposits (CDs), which will be an important source of funding.”
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