Investors bet on small finance banks as financial inclusion makes way

High growth, certainty of exits attract PE firms

As financial inclusion makes deep inroads into India, private equity players are taking big exposures in small finance banks as they see these new-age banks to be the largest beneficiaries of this inclusion. 

Besides the prospect of huge gains, ease of exit is another factor driving the interest of large players.

According to data compiled by Venture Intelligence, around $800 million has been pumped into various small finance banks since September 2015.

In a bid to promote financial inclusion by catering to the financing needs of small and micro enterprises and people at the bottom of the pyramid, the Reserve Bank of India