Equitas Small Finance Bank Clarifies Relationship with Unico Housing Finance Over Single Deposit Transaction
Equitas Small Finance Bank Limited has issued a factual clarification addressing questions raised regarding its association with Unico Housing Finance Private Limited concerning business transactions and related party activities. The bank confirmed that aside from one specific deposit transaction, there have been no other business dealings between the two entities before or since this date.The clarification responded to queries suggesting a defined "nexus" between Equitas SFB and Unico. While such terms may imply broader transactions, the bank stated that, barring the noted single deposit, both organizations have maintained zero further business relationship of any type.
Details of Transactional Relationship
The sole transaction identified between Equitas SFB and Unico involved a bulk deposit made by Unico with the bank in 2024. The transaction was structured as an ordinary course of business and at arm's length, adhering to applicable regulations concerning related party transactions.Key details of this deposit are summarized below:
| Parameter | Details |
|---|---|
| Transaction Type | Bulk Deposit (not a loan) |
| Depositor | Unico Housing Finance Private Limited |
| Amount | Rs. 25 crore |
| Date of Booking | January 1, 2024 |
| Maturity Date | March 30, 2024 |
| Duration | 89 days |
| Interest Rate | 7.5% p.a. |
The deposit was repaid upon maturity. Equitas SFB confirmed that it has neither provided any loans to Unico nor intends to do so in the future.
Disclosures Regarding Management and Related Parties
Equitas SFB also addressed related party disclosures concerning its Managing Director and CEO. The bank confirmed that the investment made by the MD & CEO's daughter in Unico Housing Finance was disclosed to the Board, both during annual reporting periods and at the time of his re-appointment. This disclosure aligns with banking regulations requiring adherence to provisions regarding the financial interest held in other companies by a director or their spouse.The bank affirmed that all required disclosures related to appointments and transactions between Equitas SFB and Unico were made strictly in accordance with applicable regulations.
EQUITASBNK Stock Price Movement
Shares of Equitas Small Finance Bank Limited gain to ₹75.16 as of 1:58 PM today, rising by 0.32%. The stock remains active within its trading range, having touched a low of ₹74.26 during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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