href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance
Hello friends, welcome to Yadnya Investment Academy. Today we will see what are small Finance banks. You must have seen recently that Ujjivan
small Finance bank, the listing of this subsidiary is coming, the IPO is coming between 2-4 December. There is a price band between 36-37, the lot size is 400. So there is a
lot of excitement, we have also tried to present a small analysis in front of you. In the coming days, we will present comparisons also but many queries have started coming that what is small none;">Finance bank? Why this concept has been developed? So to explain this, we have come in front of you with this CashNews.co. So what are small Finance
banks? We have big banks like HDFC bank, State Bank of India, ICICI bank We have Yes bank, we have Kotak bank, we have a lot of banks. Still why are we coming to small none;">Finance banks in India? So normally what happens is that commercial banks, Big banks pay more attention to big Profits and small unserved or underserved customers like farmers, micro and small businessmen or people who run small businesses etc. they do not get
Credit immediately. So for that they have promoted small Finance banks. Earlier there were a lot of micro style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance
days give me 1100-1200 rupees, so he thinks that he is taking 100-200 rupees extra from me. But if you Yield it annually then it will become very big. So RBI thought that these things should not be like this, proper structuring should be there for this also. So they said
let’s do one thing, we bring a new ruling of small Finance banks which will be under RBI, completely properly RBI rules and regulations will be managed. So then all
these things started developing there. So they started giving licenses, around 70-80 people showed aspirations to give us the license to become a small Finance bank. So RBI
gave license to 10-11 people from which Ujjivan small Finance bank is one. So normally their objective is to serve unserved and underserved categories of our society. So they
give Loans to them or they should have options for Savings. So here their further objective should be provision of Savings vehicle. So first is provision of Savings vehicles. Now what is provision of Savings
vehicles? You open a Savings account, current account, if you want you can do fixed deposits. So start saving. Once you start having Savings then automatically Assets will be visible in front. And your financial profile will be a disciplined
profile. So for this provision of Savings. And second objective as we told that they should have proper Credit access. If you have opened a Savings account, current account then you will start going to the bank. Then you will feel that I need some
Loan to help my business. Then if your Savings profile is built, your account is developed then bank gives you Loans from there. What is Credit access? Credit means banks that give you Loans or
bank advances are used in different names. You must have seen that this name is familiar to us but we are not familiar with the name of Credit or advance. So we have tried to explain all this in front of you. So who should get this Credit access? Small and marginal
farmers or micro and small enterprises should get this Credit access. All this started with a basic objective. So what are the rules and regulations applicable to small none;">Finance banks? Small Finance banks follow all the rules and regulations of RBI. Like if we see according to private sector banking then only FDI’s
limit is 74%. In this also foreign direct investment can be done. There is no problem in that. Second, at least 75% of the lending should be done by the priority sector. Normally, this priority sector lending is done in a place where commercial banks are not interested. But here the percentage is
100 rupees total Loan book. So 75 rupees of the Loan book should be done by private sector lending. Private sector lending means all the unserved and underserved sectors like farming, micro and small enterprises. So they should be the major funding here. Normally,
commercial banks are not interested in small amounts. They think we will invest in bigger Loans. But here they have no restriction that you cannot invest in big Loans. So their focus should be here only. That is why 75% of the lending will be done by the priority
sector. So automatically these banks will always be retail oriented banks. Like ICICI, SBI, Yes bank, these banks have majorly faced problems in wholesale banking. These are the Loans that have been given to them where NPA’s pressure has been created. Like we made a
CashNews.co on Ujjivan small Finance bank, we told you that 0.9% is gross NPA and 0.3% is net NPA. You can understand that this is the reason for the decrease. Because here
the lending is retail oriented and they have maintained their Credit profile automatically. And from there their business also runs smoothly. So you should always see this. Then 50% of the Loans that they have given should be up to 25 lakhs. So this means that the
Loans given should be below 25 lakhs. So this is another way to keep them in retail lending. 75% of the lending is done by the priority sector. So automatically this condition will be approved. Rest, they can accept any number of deposits, you can keep money in any saving account,
current account. There are no restrictions available here. So you should see all these things. That’s why you must have seen that in many urban areas, they are opening their bank branches. There is a good business growth here. RBI has told them that from the time they have started the
operation, you will have to do listing within 3 years. Why do you have to do listing? Because these promoters have to bring their stake down. So there are some conditions of promoters that we will tell you now. Like the first condition, individuals and professionals who have 10 years of experience
in NBFCs or banking. NBFCs means non-banking financial companies or in banking, They can start. For this, the paid up Equity Capital will cost at least 100 crores. And out of that 100 crores, at least 40% of the Capital should be put in by the
promoter initially. And in the next 12 years, the promoter should bring his stake below 26%. So these are some conditions that RBI has kept with them. We have told you about FDI. All the rules and regulations for small #1a73e8; text-decoration: none;">Finance banks are available. This is an interesting field of small Finance banks. So we want you to watch closely. In the coming
time, we will try to compare these listed banks with Ujjivan small Finance banks. Because the IPO is coming, it is better that many more things open up in front of you. So
that you can also decide which bank you should invest in. If you look at it according to the business profile, due to small Loans, the net interest margins are very high. Like we had explained to you earlier that if you are giving 10,000 rupees to someone for 6 months and he is
returning you 1100 rupees after 6 months, then that 10% interest may be on absolute terms but on annualized terms it becomes 20% and there the margins improve a lot. And if NPAs are also keeping these banks under control, then it is a very good thing. So we hope you liked this small CashNews.co.
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CashNews, your go-to portal for financial news and insights.
Nri people k liye kasa h y bank
Fd बॅच जात आहे ऐसी स्मॉल बँक का नाम और एड्रेस बताओ
Kiska pasandida h yesbank 😂😂
Loan mil ta kiya
Nice explain sir
पीएमसी बैंक जो बंद हुआ है 23 September2019 मे
क्या भारत पे सेंट्रम ग्रुप वाले ग्रुप वाले मिलकर उसको चालू करके स्मॉल फाइनेंस बैंक खोलकर भले ही पैसा आराम से मिले पर दिला देंगे क्या लोगों का पैसा वापस दिला देंगे क्या आप बता सकते हैं क्या सर प्लीज🙏🙏🙏
yes bank jada jaruri h
Sir mujha apsa bat karni ha
Masha allah
three in one equities small finance Bank
Thanks you sir ❤️❤️❤️
Nice…. small banning information. thanks
Thank for this information
Ek Small Bank Apne IOP Kab Launch kar Sakta Hai
Small finance bank ka FD insurance Kitna hota Hai…..1lac or 5 lac…..
In RBI guidelines, it says t he license can only be applied by companies owned by indian residents, how do these banks allow 74% of foreign investment then?
How I take marchent I'd from in this bank.
Very great video all users should suscribe this channel
Good deep and clear study …
Thanks a Lot…
m have done once but…..its very unfortunate that it was first & final. 🙂
bt overall u guys r great
Sir small bank fd is safe or not?
Sir au small finance pr video share kre
Sir zydus wellness pr video share kre
If I take 1 share of ujjivan finance services limited on 2 December 2019, then can I get 2 rs discount on ipo @35 rupees
please reply
SIr, why RBI mandates taking down the promoter stake below 26% ? What is the reason behind it? Please explain
Please make a video in allotment of shares through IPO
Sir please make Vedio on current GDP growth and path ahead for markets. This quarter GDP growth is 4.5.
Sir 400 Share ki discount ke liye 400 share lene padenge ya 1 share lene par bhi 400 share me discount mil Jayega?
Sir can you make video on business model of different NBFCs.With elaboration on technical terms
Sir,.
Motilal oswal has launched NFO for Nifty 50 & next 50 Index fund. Is it advisable to invest lump sum of Rs.20k to 30k in the new Nifty 50 & next 50 index fund by motilal oswal.Since Nifty has hit all time High!!
Sir i had sent a mail for you to cover PSU banks also when Essar judgment came so that PSU banks that will benefit more from rapid recovery can be analysed. Pls cover that topic also if possible
make a video on SBI card IPO… how they earn money??
Plz Make a video explaining payments bank
(Paytm payment bank)
How they work,
how they make money
RBI rules about it,
Etc…
Can I apply for IPO from my NRE account??