Shivalik SFB Set to Acquire ManiBhavnam Home Finance to Expand Housing Loan Business

Shivalik Small Finance Bank is in the final stages of acquiring Delhi-based ManiBhavnam Home Finance in a deal valued at approximately ₹109 crore. The acquisition is expected to strengthen the bank’s position in the affordable housing finance segment and expand its secured lending portfolio.

The deal reportedly includes a combination of share swaps and cash consideration. According to people familiar with the development, the bank has already secured approval from the Reserve Bank of India and is currently awaiting clearance from the Registrar of Companies.

Strategic Focus on Affordable Housing

Shivalik Small Finance Bank said the acquisition aligns with its strategy to increase its presence in the affordable housing finance market and support financial inclusion initiatives. The transaction is also expected to provide complementary geographic reach across North India.

The affordable housing finance market in India is projected to witness strong growth in the coming years, with estimates suggesting nearly 20% compounded annual growth till 2030. By acquiring a housing finance company, Shivalik aims to strengthen its position in this fast-growing lending segment.

Strong Backing and Capital Support

The bank is backed by Sumitomo Mitsui Banking Corporation, Japan’s largest lender. In August 2025, SMBC Asia Rising Fund acquired a 4.99% stake in Shivalik for around ₹60 crore. Existing investors including Accel, Lightspeed, Quona Capital, and Sorin Investments also participated in the funding round, taking the total capital raise to ₹100 crore.

The fresh capital has helped the bank pursue expansion opportunities, including inorganic growth through acquisitions.

Secured Lending Remains Key Strength

As of December 2025, Shivalik’s total loan book stood at ₹3,659 crore, with housing loans accounting for ₹370 crore. The bank primarily focuses on secured lending, with nearly 90% of its portfolio backed by collateral such as property, gold, and agricultural commodities.

Meanwhile, ManiBhavnam Home Finance currently has a loan book of approximately ₹300 crore, making it a strategic fit for Shivalik’s growth plans in the housing finance space.

Also Read: RBI Cancels Licence of Sarvodaya Co-operative Bank Over Financial Concerns!

Conclusion

The proposed acquisition of ManiBhavnam Home Finance marks an important strategic step for Shivalik Small Finance Bank as it seeks to expand its affordable housing finance business. Backed by strong investors and a secured lending-focused model, the deal could help the bank strengthen its market presence, diversify its loan portfolio, and capitalise on the growing demand for affordable housing finance in India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.