Shivalik Small Finance Bank has successfully completed its acquisition and merger with Delhi-based ManiBhavnam Home Finance India Pvt last week, as reported by The Economic Times. The deal, valued at nearly ₹109 crore, establishes the bank's presence in India's affordable housing finance market. The merger structure includes 20% cash payment and the balance settled through share swap, with the deal receiving approval from the ministry of corporate affairs early last month.
The acquisition brings ₹320 crore of loan book to Shivalik, significantly expanding its lending portfolio. According to The Economic Times, Shivalik had ₹4,030 crore of advances and ₹4,013 crore of deposits at the end of March. The affordable housing finance segment is projected to expand at a 20% compounded annual growth rate until 2030, positioning the merged entity well for future growth opportunities.
Shivalik's lending portfolio remains 90% secured with collateral, while the remaining 10% unsecured carries various credit guarantee covers, as reported by The Economic Times. The bank's credit-deposit ratio stood at 99.6%, supported by refinance lines from the National Bank for Agriculture & Rural Development and Small Industries Development Bank of India. The bank plans fresh capital infusion to continue its growth trajectory.
Backed by Japan's largest lender Sumitomo Mitsui Banking Corporation (SMBC), Shivalik expects to maintain its growth momentum of around 40% over recent years, according to managing director Anshul Swami. The bank had previously mobilised ₹100 crore in August last year through share sales, with SMBC Asia Rising Fund acquiring a 4.99% stake for about ₹60 crore while existing investors contributed another ₹40 crore. The merged entity is positioned to build multiple customer relationships through the secured, higher NIM, and long tenor business model.
