Centrum to merge micro credit, SME biz with SFB for ~426 crore

Centrum Capital will merge SME lending business and micro-credit business of its group with proposed small finance bank for consideration of ~426 crore. These businesses are run by two subsidiaries.

In June 2021, the Reserve Bank of India (RBI) gave “inprinciple” nod to Centrum Financial Services to set up SFB. The proposed bank is will take over the beleaguered Punjab and Maharashtra Cooperative Bank (PMC Bank).

Centrum Capital in its filing with the BSE said its board has approved the transfer business of wholly-owned material subsidiaries, Centrum Financial Services and Centrum Microcredit, to its proposed step-down arm (proposed SFB).

The transfer via slump sale is subject to shareholders, statutory, and regulatory approvals. Centrum has indicated that the transaction would be completed in two months. Its stock closed four per cent higher at ~33.9 per share on the BSE.