SFB, however, issued a clarification to the exchanges during trading hours on Monday (13 September) in response to the media articles.

"we are unable to comment on media speculation and rumours and it would be inappropriate on our part to do so," SFB clarified in an exchange filing.

"the management of the Bank continues to explore and evaluate various opportunities or associations in the interest of the Bank, as and when considered appropriate, which is always a subject matter of further feasibility studies and the need for requisite consents in accordance to applicable law and other stakeholders," it added.

“At present, there is no such decision taken by the Board or any of its Committees, which calls for dissemination of information or disclosure of event in terms of regulation 30 of the Listing Regulations,” SFB added.

Shares of SFB surged 20% to Rs 179.40 on Monday (13 September). The stock has surged 34.28% in two sessions from its close of Rs 149.50 on Thursday (9 September 2021). The stock market was shut on Friday (10 September) on account of Ganesh Chaturthi.

Shares of SFB entered the stock exchanges on 26 March 2021. The stock was listed at Rs 293, a discount of 3.93% to the initial public offer (IPO) price of Rs 305. The IPO was subscribed 2.37 times. The issue opened for bidding on 17 March 2021, and it closed on 19 March 2021. The price band for the IPO was set at Rs 303-305 per share.

The stock is currently trading at 34.18% discount to its IPO price and 31.48% discount to its listing price.

SFB is among the leading small finance bank in India in terms of net interest margins, return on assets, yields and deposit growth and had the lowest cost-to-income ratio among SFBs in India in FY2020.

SFB reported net loss of Rs 47.72 crore in Q1 June 2021 compared with net profit of Rs 26.58 crore in Q1 June 2020. Total income fell 0.84% to Rs 238.54 crore in Q1 June 2021 over Q1 June 2020.