Shivalik Mercantile Bank became 1st UCB to convert to SFB

The Reserve Bank of India has granted in-principle approval to Uttar Pradesh-based Shivalik Mercantile Co-operative Bank Ltd to convert to a small finance bank.
The RBI will grant licence to Shivalik Mercantile bank for the commencement of banking business under Section 22 (1) of the Banking Regulation Act, 1949 as an SFB.
The Urban Cooperative Banks (UCBs) should have to comply with the latest guidelines for on-tap licensing of SFBs in the private sector. Under this guideline, SFBs should maintain a minimum net worth of Rs. 100 crores from the date of commencement of business.
SFBs will have to maintain a minimum capital adequacy ratio of 15 % of RWA on a continuous basis. They should also have to increase the minimum paid-up voting equity capital to Rs.200 crores within 5 years of the date of commencement of business.
The SFBs are required to extend 75% of their loans to sectors under Priority Sector Lending and 50% of the SFB loan portfolio should constitute loans and advances up to Rs.25 lakhs.
Shivalik bank is the largest Urban Cooperative Bank in Uttar Pradesh.
Shivalik Mercantile Bank ltd was established in 1998.
Headquarter - Saharanpur, Uttar Pradesh.
Chairman - Yashvir Kumar Gupta