RBI Blocks Dia Vikas Capital's Stake Acquisition in ESAF SFB

The Reserve Bank of India has turned down Dia Vikas Capital's request to acquire more than a 5% stake in ESAF Small Finance Bank, forcing the bank's promoter to seek alternative ways to reduce its shareholding.

The rejection occurred as RBI communicated its disapproval via email, stating that the acquisition exceeded permissible limits. This decision aligns with the RBI Bank Ownership Directions 2023, which ESAF is obliged to comply with.

Currently, ESAF Financial Holdings, the major stakeholder in ESAF SFB, owns around 53% of the bank. The licensing norms mandate a reduction to 26% by the year 2032, placing pressure on the bank's board to devise a strategic response.