Ujjivan SFB has documented a draft plan with SEBI in August. It intends to raise about Rs 1,200 crore through the open issue. The firm has just gotten endorsement from the market controller for its Initial public offering. As of the information, RBI has seen issues at Ujjivan SFB at the hour of the examination. RBI researched Ujjivan SFB under the financial guideline act and RBI act.
As per the source, the Reserve Bank of India had put a little condition while favoring the SFB permit to Ujjivan to control little fund bank tasks. The national bank had molded that no SFB couldn't list in the stock trade as long as 3-years from the date of the permit gave, and such SFB ought to have capital at any rate Rs 500 crore toward the finish of the third year.
Ujjivan SFB's three years of activities would finish before the finish of January 2020. At that point it will dispatch its Initial public offering between Feb-Walk 2020. In February 2019, the bank has dealt with a Pre-IPO Placement. Around then, it has raised Rs 300 crore from a grasp of financial specialists including HDFC Life and Sundaram Shared Reserve. Simultaneously, the organization has esteemed at Rs 2000 crore.
RBI Investigation Report:
As of reports, RBI was explored Ujjivan SFB in February 2019 and saw an absence of a framework to follow need division credits. It additionally saw that risk items were being offered from specific focuses without RBI endorsement. It has commented a few obligations concerning Ujjivan SFB's misrepresentation the board framework.
Besides, it likewise saw an uncalled for gain rate on a specific date for store of a similar tenor and same sum. The pace of intrigue referenced in certain assent letters was unique in relation to those referenced in the advance understanding. Non-enhancing of center financial programming redid for small scale credits.
As per the source, After the Initial public offering, Ujjivan SFB will participate in the friend rundown, for example, AU little money bank which had effectively recorded in the most recent year. In addition, two different organizations additionally documented draft papers with SEBI, which are EESL and CSB.