“RBI vide its communication dated July 09, 2021 has permitted the bank to use to RBI, looking for approval for scheme of amalgamation,”
mentioned in a regulatory submitting.
“We would be initiating steps to finalise the scheme of amalgamation, submit to the boards of the bank and EHL for approval and take further action thereafter in accordance with applicable regulations and guidelines,” the bank mentioned.
The Equitas group since 2018 was on the lookout for the reverse merger of the holding company with the bank however couldn’t take it ahead because the sector regulator didn’t enable it to take action.
Under the licensing settlement, a promoter of a small finance bank can exit or stop to be a promoter after the necessary preliminary lock-in interval of 5 years. In case of Equitas, the preliminary promoter lock-in expires on September 4, 2021.