InvestorQ : I hold shares of Satin Creditcare and I understand the company will convert into a Small Finance Bank. What does it hold for the stock?
Debbie Mascarenhas made post

I hold shares of Satin Creditcare and I understand the company will convert into a Small Finance Bank. What does it hold for the stock?

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K V RAO answered.
2 years ago
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RBI has announced norms for SFBs. The idea of conversion is not good but it has become inevitable as continuing as NBFC is also risky. Banking business model in the present scenario is fraught with more risks.
Having said this, there is immense scope for SFBs because big banks in public sector have failed in encashing opportunities. The SFBs capable of separating wheat from chaff will survive. High level of competancy in managing finance business is required. Most of the newly started SFBs are not dling well.

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Crowny Pinto answered.
2 years ago
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Satin Creditcare is an NBFC / MFI that operates in the micro financing segment largely in central and North India. It has reported more than doubling of profits in the last financial year and the stock has bounced nearly 50% from the lows of November last year. The company has only expressed its intent to convert into a Small Finance Bank but the norms for Small Finance Banks will be announced by the RBI only towards the end of August. The idea of converting into SFB will subject Satin to more regulation by the RBI but will also make the company financially safer for investors. It will also give a larger platform for the company to expand its financial service offerings.

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