KOLKATA: Shivalik Small Finance Bank, supported by Japan’s largest lender, Sumitomo Mitsui Banking Corporation (SMBC), is nearing completion of its acquisition of Delhi-based ManiBhavnam Home Finance for ₹109 crore.
The Reserve Bank of India (RBI) has approved this acquisition, with Shivalik currently seeking clearance from the Registrar of Companies. The deal will involve both share swaps and a cash component, according to sources familiar with the situation.
“The acquisition aims to enhance Shivalik’s footprint in the affordable housing sector, further financial inclusion efforts, broaden secured lending, and extend geographical reach in North India,” a bank spokesperson stated.
Over the past year, Shivalik has been exploring this inorganic growth route. The Economic Times initially reported on March 30, 2025, that Shivalik was seeking to acquire a mid-sized housing finance company.
In August of last year, the bank increased its capital when SMBC Asia Rising Fund, a venture capital firm co-founded by SMBC and Incubate Fund, acquired a 4.99% stake in Shivalik for roughly ₹60 crore. Additionally, existing investors Accel, Quona, Lightspeed, and Sorin Investments collectively contributed another ₹40 crore, raising total equity to ₹100 crore. As of December last year, Shivalik’s loan book reached ₹3,659 crore, primarily driven by housing loans, followed by vehicle and gold loans.
Out of this, ₹370 crore is allocated to housing loans, while ManiBhavnam Home Finance has a loan book of approximately ₹300 crore. Shivalik, notable for evolving from an urban cooperative bank into a small finance bank, primarily focuses on secured lending, with around 90% of its loan portfolio collateralized by assets like property, gold, and agricultural commodities. Microfinance makes up less than 10% of the overall portfolio and is safeguarded under the credit guarantee scheme, as confirmed by a bank official.
This acquisition positions Shivalik to tap into the growing affordable housing finance market, projected to grow at a 20% compound annual growth rate until 2030.
