New Delhi: Ujjivan Financial Services has submitted an application to RBI for a small finance bank licence for its subsidiary.

“The company submitted an application to the Reserve Bank on August 18, 2016 for grant of banking licence to Ujjivan Small Finance Bank Limited, which is the wholly-owned subsidiary of the company," Ujjivan Financial said in a regulatory filing.

The said application has been made in pursuance of the in-principle approval dated 7 October, 2015, granted to the company by the RBI, it added. Reserve Bank of India (RBI) had granted an in-principle approval to a total of 10 applicants including Ujjivan Financial Services.

Earlier in May, Ujjivan Financial Services pared its foreign shareholding by listing into stock market as the RBI guidelines mandates not more than 49% holding by them to become eligible for running a small finance bank.

The Bengaluru-based micro finance company serves to the economically active poor who are not adequately catered by the financial institutions by providing both group and individual loans. Besides, it also provides loan services to micro and small enterprises. Ujjivan Financial stock closed 0.41% down at 449.05 apiece on BSE.