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The Reserve Bank of India has rejected an arrangement between ESAF Financial Holdings and its investors which would have led to Dia Vikas Capital holding more than 12% in the ESAF Small Finance Bank.The group will now have to redraft the scheme, which was envisaged to bring down promoter 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% of paid-up share capital of the bank cannot be acceded to," ESAF Small Finance Bank said Tuesday in a stock exchange notice. The stock exchange notice also said that ESAF Financial Holdings, the promoter of ESAF Bank with 52.92% ownership, is now evaluating an alternative course of action to reduce the promoter shareholding in the bank to comply with the RBI Bank Ownership Directions 2023. Pending the same, the scheme would not be filed with the National Company Law Tribunal.The scheme of arrangement was approved by the board of ESAF Financial Holdings on December 20, 2024. ESAF Bank managing director K Paul Thomas held 6.06% in the bank at that time, taking the total promoter holding to 58.98%.Live EventsIt was envisaged that the implementation of the scheme would bring down total promoters' holding in the bank to 44.42%Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onesaf small finance bankRBIDia Vikas CapitalESAF Small Finance BankESAF Financial HoldingsK Paul Thomasshare acquisitionReserve Bank of India (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onesaf small finance bankRBIDia Vikas CapitalESAF Small Finance BankESAF Financial HoldingsK Paul Thomasshare acquisitionReserve Bank of India(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
