'Bottom of the pyramid' prove to be the best customers for SFBs

At Business Standard's 'Unlock BFSI 2.0,' top SFB chiefs seemed very comfortable even when over 90% of their loan books froze into moratorium in March; By July, moratorium loans halved for most

Small finance banks (SFBs) have seen a sharp increase in recoveries with economic activities picking up.

And recoveries are coming from the “bottom of the pyramid” — people who made sure they didn’t pile up debt and run into an overlev­eraged position. At Business Standard’s virtual financial conclave Unlock BFSI 2.0, top SFB chiefs in the country seemed to be comfortable even when more than 90 per cent of their loan book froze into a moratorium in March.

By July, the moratorium loan book halved for most, and after it is over next month, the SFBs expect things will be