Small Finance Banks

RBI allows small finance banks to offer pre-sanctioned credit via UPI

RBI allows Small Finance Banks to offer pre-sanctioned credit lines via UPI, aiming to boost financial inclusion for underserved communities, including small businesses and micro-entrepreneurs

SFBs: The canter on a chequered terrain as deposit challenges loom

All said, growth prospects for SFBs remain buoyant, anchored by comfortable capitalisation and ever-increasing presence in underpenetrated markets

SFBs ready with systems to make the transition, say CEOs at BS BFSI Summit

SFBs have a talent pool of senior managers with over 20 years of experience, ensuring robust succession planning for a professionally managed bank.

BFSI Summit: 'No hurry'- Small finance bank experts weigh on 'going big'

Industry leaders at the Business Standard BFSI Insight Summit discussed the growth potential of small finance banks and their possible evolution into universal banks to expand their public appeal

SFBs should adopt responsible lending practices: RBI DG Swaminathan

The boards are also expected to ensure a proper succession planning for top management

RBI dy guv Swaminathan calls for responsible lending at small finance banks

The RBI has been encouraging banks to strengthen governance standards to prevent financial instability and systemic risks

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models

Small Finance Banks' loan growth to lower to 25-27% in FY25: CRISIL Ratings

Small Finance Banks' (SFBs) loan growth will moderate to 25-27 per cent in FY25 against 28 per cent in FY24, a domestic rating agency said on Monday. Crisil Ratings said though a tad lower, the advances growth will be robust and driven by factors like segmental and geographical expansion by the entities. While capital buffers remain healthy, SFBs will face challenges in mobilising deposits and their costs and will explore alternative, non-deposit avenues to fund credit growth, the agency said. The asset growth will be driven by traditional microlending being the most popular and new ones like mortgages, small businesses or even unsecured loans. "Credit growth in new asset classes is seen at 40 per cent this fiscal, while that in traditional segments will be 20 per cent," its senior director Ajit Velonie said. He added that the share of new asset classes will cross 40 per cent by the end of March 2025 on the back of the faster growth and underlined that most of the asset ...

Q1 results: SFBs' net profit growth flat as provisions jump over 2x

Provisions more than double on asset quality pressures

Avoid extra loans to borrowers with over Rs 200,000 MFI exposure

The enhanced guidelines must be issued to lending institutions to protect the interests of the microfinance sector and specifically its clients

Strong loan growth for small finance banks in Q1FY25, Casa declines

The deposits of the SFBs posted a double-digit increase from the quarter ended in June 2024. Deposits of Equitas SFB grew by 35.40 per cent, Capital SFB by 10 per cent, and Suryoday SFB by 42 per cent

'Most SFBs would not clamour to become universal banks if RBI eases curbs'

Highlighting the importance of small finance banks (SFBs) in fostering financial inclusion, former Financial Services Secretary D K Mittal said most of them would not clamour to become universal banks if some restrictions are eased by the Reserve Bank. To promote financial inclusion in the country, RBI, in 2014, issued the guidelines for licensing of small finance banks (SFBs) in the private sector. Following this, RBI granted licences to a dozen entities. As per the RBI guidelines, SFBs are required to open at least 25 per cent of their branches in unbanked rural centres and are mandated to provide 75 per cent of loans to the priority sector compared to 40 per cent for the commercial banks. Last month, the RBI invited applications from small finance banks meeting specified criteria, including a minimum net worth of Rs 1,000 crore, for becoming regular or universal banks. "While issuing guidelines for Small Finance Banks to become universal banks, it would be in the larger nationa

ESAF SFB evaluating conversion to universal bank: MD & CEO Paul Thomas

In April, the Reserve Bank of India (RBI) came out with guidelines for the voluntary conversion of SFBs to universal banks.

Have restrained ourselves from taking SFB route: CreditAccess Grameen MD

Hebbar tells that it is diversifying its loan portfolio by increasing the share of non-micro loans and the liability book by raising funds internationally

ESAF SFB Q4 results: Net profit slips 57% to Rs 43 cr, NII up 18%

ESAF Small Finance Bank on Thursday reported 57 per cent decline in net profit at Rs 43.4 crore for the fourth quarter ended March 2024 on account higher provisions. The Kerala-based bank had posted a net profit of Rs 101.4 crore for the year-ago period. Total income increased to Rs 1,152 crore in March quarter from Rs 868 crore a year ago, the bank said in a regulatory filing. Interest income grew to Rs 1,002 crore during the period under review from Rs 774 crore in the corresponding quarter a year ago. Net Interest Income (NII) grew 18.4 per cent to Rs 591 crore compared to Rs 499 crore in the same quarter a year ago. The bank's Gross Non-Performing Assets (NPAs) deteriorated to 4.76 per cent of gross advances as of March 31, 2024, from 2.49 per cent by the end of March 2023. Net NPAs also increased to 2.26 per cent of the advances from 1.13 per cent at the end of 2023. As a result, provision for bad loans and contingencies rose nearly three-fold to Rs 226 crore as against Rs

Best of BS Opinion: Socially construct AI, encouraging investment, more

Here is the best of Business Standard's opinion pieces for today

Small is beautiful, but not always

For most SFBs, being a small bank is part of their journey, not the destination

RBI approves appointment of Sanjeev Nautiyal as MD&CEO of Ujjivan SFB

Third CEO in five years; current CEO Davis to be relieved early

Infibeam's CCAvenue partners with Shivalik SFB to improve merchant access

Small finance bank's account holders will be able to make payments on websites 'powered' by CCAvenue, according to agreement

Small finance banks to seek RBI clarification on loan book diversification

The AU SFB board will discuss future course of action soon. It says the focus is now on integrating with Fincare