Shivalik Small Finance Bank to raise up to Rs. 100 crore in FY21

Shivalik Small Finance Bank, the first cooperative bank to get a small finance bank licence, is looking to raise up to Rs. 100 crore this year. According to Kumar Gupta Suveer Kumar Gupta, Managing Director and Chief Executive Officer, Shivalik Small Finance Bank, the bank is looking to raise capital from both shareholders and other investors.

After RBI issued a small finance bank licence to the cooperative bank recently, the 23-year-old bank is now eyeing government refinancing schemes and partnerships with fintechs to grow its business. It will focus on small business loans, gold loans, digital loans against fixed deposits, life insurance policies, e-warehousing receipts, among others. The bank is looking to grow its business by 50% over the next year and further touch the target of Rs. 6,500 crore over the next four years. The current business of the bank stands at Rs. 2,000 crore as of March 31, 2021.

“We believe that we should focus on banking and for everything else bring in experts. For the core banking system, we have partnered with Finacle. We have partnered with Indiagold for providing gold loans. We have tied up with Airtel Payments Bank for digital loans. We are also in talks with fintechs for customer onboarding and digital payments. We would like to give a complete digital ecosystem for our customers,” Gupta added.