Page 3 - Small Finance Bank

Postal dept decides to convert India Post Payments Bank to a SFB

India Post will partner with Common Service Centre to provide a suite of citizen centric services such as banking, remittance, insurance, DBT, bill and tax payments etc at post offices

High provisioning, NPA hit SFBs profitability

Newly-opened small finance bank (SFB) had a rough start, as many of them saw decline in profitability and loss in the second quarter of the present financial year due to stressed microcredit accounts. Many SFBs had to keep aside substantially high amount of money as provisions due to non-recovery of loans. On account of to the twin impact of demonetization and rumors of debt waiver, the industry saw non-performing assets increase to more than 5-6 per cent, against about one percent prior to demonetization. Ujjivan Financial Services, the holding firm for Ujjivan Small Finance Bank posted a net loss of Rs 12 crore in the second quarter of the present financial year, against a net profit of Rs 73 crore in the corresponding period last financial year. In the first quarter of this financial year too, the bank had posted a net loss of about Rs 75 crore. The bank had to make a provision of about Rs 88 crore in the last quarter on account of bad loans. Another listed SFB, Equitas Holding .

Janalakshmi Financial Services to start small finance bank in Q2

The Bengaluru-based NBFC will open 300 branches during the year covering major locations in India

RBI issues Small Finance Bank license to ESAF

Becomes the first bank in Kerala to be given approval since independence

Breather for niche banks on capital, borrowings

However, the minimum capital requirement for these banks have been kept higher at 15% as compared to the scheduled commercial banks, which is at 11%

Small finance bank hopefuls queue up for final approval

Last year, for the 1st time the central bank had granted in-principle approval to 10 entities for SFB

Small bank hopefuls want norms eased

Small finance bank hopefuls asked N S Vishwanathan, RBI deputy governor, to relax priority lending norms

ESAF applies for final licence for small finance bank

The microfinance institution (MFI) has presence in 10 states and will start banking operations with the 10 branches

SFBs to be major suppliers of PSL certificates by FY20

SFBs need to maintain 75% of adjusted net bank credit as their PSL target

India's first small finance bank launched

Capital Small Finance Bank opens 10 branches in Punjab; to add nine more in FY17