RBI Rejects Dia Vikas Stake in ESAF Small Finance Bank

New Delhi, Oct 28 (PTI) The Reserve Bank of India has rejected a proposal of Dia Vikas Capital to acquire more than 5 per cent stake in ESAF Small Finance Bank (ESAF SFB).

The move would force ESAF's promoter to find an alternative way to reduce its shareholding in the bank.

"The Reserve Bank of India vide email dated October 27, 2025 has informed that the acquisition of shares pursuant to the scheme by Dia Vikas Capital Private Limited, one of the identified shareholders under the scheme, in excess of 5 per cent of paid-up share capital of the bank cannot be acceded to," ESAF Small Finance Bank said in a stock exchange filing on Tuesday.

The bank said its board of directors is assessing the implications of the RBI's decision and is also evaluating alternative steps to bring down the promoter shareholding in order to comply with the RBI Bank Ownership Directions 2023.


The scheme of arrangement was approved by the board of ESAF Financial Holdings on December 20, 2024.

As of the September quarter, ESAF Financial Holdings, the promoter of ESAF SFB, owned nearly a 53 per cent stake in the bank. Besides, ESAF SFB managing director K Paul Thomas held a 6.05 per cent stake during the period, shareholding data with the BSE showed.

The small finance bank licensing norms require ESAF's promoter, ESAF Financial Holdings, to reduce its shareholding to 26 per cent by 2032.

Shares of ESAF Small Finance Bank settled 3.62 per cent lower at Rs 28.5 on the BSE.