Shivalik SFB Acquires ManiBhavnam for ₹109 Cr, Eyes Housing Growth

Shivalik Small Finance Bank has strategically acquired Delhi-based ManiBhavnam Home Finance India Pvt Ltd for approximately ₹109 crore. This move marks the bank’s entry into the affordable housing finance market, targeting lower and middle-income borrowers across India.

Key Financials & Acquisition Impact

The acquisition immediately reshapes Shivalik’s financial landscape, significantly expanding its asset base and positioning it for targeted growth.

• Acquisition Cost: ₹109 crore
• Added Loan Portfolio: ₹320 crore
• Prior Advances: ₹4,030 crore
• Deposit Base: ₹4,013 crore
• Credit-to-Deposit Ratio: 99.6%

Strategic Growth and Capital Infusion

Shivalik Bank is pursuing an ambitious growth trajectory, aiming for approximately 40% yearly expansion. This aggressive target necessitates ongoing capital infusions to fuel its strategic initiatives.

The bank recently secured fresh capital:

• Raised ₹100 crore in August 2025.
• SMBC Asia Rising Fund acquired a 4.99% stake for ₹60 crore.
• Investments also came from Accel, Quona, Lightspeed, and Sorin Investments.

This capital supports a strategy focused on increasing secured lending exposure, a move expected to enhance net interest margins for the bank.

Mitigating Risk in a Competitive Market

Management emphasizes a strong focus on risk mitigation, with 90% of the bank’s current lending collateral-backed. Unsecured loans are further supported by credit guarantee schemes, a crucial approach as the bank expands.

The affordable housing segment, while promising, faces increased competition. Investors will closely monitor several factors post-acquisition: the seamless integration of the new loan book, its influence on capital adequacy, the trajectory of profit margins, and the bank’s ability to maintain low levels of bad loans amidst this growth.