Shivalik Small Finance Bank has successfully completed the acquisition and merger of Delhi-based ManiBhavnam Home Finance India Pvt Ltd. The deal, which is worth close to ₹109 crore, was sealed last week following clearance from the Ministry of Corporate Affairs. This acquisition will mark Shivalik’s entry into the affordable housing finance segment, which is predicted to grow at 20% per annum up to 2030.
As part of the transaction, 20% of the payment was made in cash, while the remaining amount will be settled through a share swap. Shivalik Small Finance Bank is backed by Japan’s Sumitomo Mitsui Banking Corporation (SMBC), one of the world’s largest banks. According to Shivalik Managing Director Anshul Swami, the merger will help the bank build long-term relationships with customers by offering affordable home loans. He said the housing finance business is considered safe because the loans are backed by property, generate better profit margins, and have longer repayment periods.
With this deal, Shivalik will add ManiBhavnam’s loan portfolio of around ₹320 crore to its business. In March, the bank had total advances worth ₹4,030 crore and total deposits worth ₹4,013 crore. Additionally, the bank has been funded by NABARD and SIDBI to help it increase its lending activities. The bank now intends to raise new capital for future growth. In August last year, it raised ₹100 crore by selling shares. SMBC Asia Rising Fund invested ₹60 crore for a 4.99% stake, while existing investors Accel, Quona, Lightspeed, and Sorin Investments contributed another ₹40 crore.
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Swami said the bank expects to maintain its 40% growth rate in the coming years. Around 90% of its loan book is secured with collateral, while the remaining unsecured loans are protected through various credit guarantee schemes, ensuring better safety for the bank.
