‘Would like to build Unity Bank before IPO to create best value’

Jaspal Bindra, executive chairman, Centrum group, which holds 51 per cent in Unity Small Finance Bank, talks to Subrata Panda & Manojit Saha of the strategy for converting the bank into a universal bank. Edited excerpts:

- 

Now that the Reserve Bank of India has approved one small finance bank’s transition into a universal bank, has the process become clearer for existing banks like yours?

■ The transition map was there from the start, but now we have seen one actual conversion happen. There are five criteria you have to meet. However, over and above that, there is a discretionary element. That was the opaque part. We still do not know the answer to that. Maybe size and diversification of books are of some relevance, and the geographical spread may also matter. At least now, we have a rough idea.

How have you incorporated the learning from observing other small finance banks?

■ We are latecomers, and hence we have the benefit of learning from others. We are clear that no single product will account for more than 25 per cent of our portfolio by the time we go for an initial public offering. We are very clear that our geographic spread will be national. We are not going to be limited to four, eight, or ten states, and no single state will account for more than 15 per cent — whether in terms of branches, business volumes, or overall exposure.