Small banks in limelight

In an unscheduled speech today morning, the RBI, amongst many other things, also announced a special long-term repo operation window for Small Finance Banks (SFBs), whereby the banks can borrow funds up to Rs 10,000 crore at repo rate for deploying for fresh loans, to be deployed for fresh lending of up to Rs 10 lakh per borrower. This facility will remain open till 31st Oct, 2021.

Following this announcement, small banks are making merry on the stock exchanges, led by Ujjivan SFB, Equitas SFB, AU SFB and Suryoday SFB.

Ujjivan SFB is currently up 3.5% at Rs.30, Equitas SFB went up almost 5.5% at Rs.58.80, Suryoday SFB went up 1.3% to Rs.248.80 but is now in the red at Rs.246 levels while AU SFB rose over 4% to Rs.952.