Small Finance Banks

Despite profitability coming under pressure, valuation remains reasonable for both private and public sector banks

Ease in priority sector norm gives small finance banks room to reduce stress

Listed small finance banks saw their net profit drop 43 percent year-on-year for the March quarter of FY25

Equitas, Ujjivan, ESAF, other small finance bank shares surge 4% as RBI eases priority sector lending norms

Experts say the change is expected to improve portfolio flexibility and reduce compliance burden, paving the way for stronger long-term growth for SFBs.

RBI closely monitoring capital position of small finance banks, few may be forced to shore up buffer

As many as 3–4 small finance banks may be required to raise capital in the next 6–12 months owing to asset quality issues plaguing the micro lenders, sources familiar with the development have said.

RBI appoints members to advisory committee on Universal and Small Finance Banks

The applications for Universal Banks and Small Finance Banks are initially screened by the regulator, to ensure 'prima facie eligibility'. Thereafter, the Standing External Advisory Committee assesses the applications.

Small finance banks stare at rising NPAs and shrinking margins

RBI should review some of the operational guidelines for SFBs to pre-empt the risk of systemic instability in the financial sector

RBI DG urges some small finance banks to expeditiously consider appointing more whole-time directors

Swaminathan J also urged boards to consider the sustainability of their growth strategies and business models by conducting a thorough review of both the liability and asset sides of the balance sheet.

Shares of AU Small Finance rise as lender applies for universal banking licence

AU Small Finance Bank has applied to the Reserve Bank of India (RBI) for voluntary transition from a Small Finance Bank to a Universal Bank.

AU Small Finance Bank best suited to transition to universal bank per new RBI guidelines, say brokerages

Brokerages are positive on AU Small Finance Bank, which emerges as a top contender to transition to a universal bank, according to the RBI's latest guidelines.

Rupee interest derivatives for SFBs may boost liquidity in OIS market, balance sheet resilience: Experts

The RBI will issue the circular regarding this shortly.

Small finance bank stocks gains after RBI allows lenders to use rupee derivative to hedge interest risks

The RBI's move will allow further flexibility to SFBs to hedge their interest rate risk and enhance their resilience.

RBI policy meet: Small finance banks can use rupee interest derivative product, says governor

Earlier, small finance banks are permitted to use only interest rate futures for proprietary hedging.

Fund raising through loan securitisation by SFBs to cross Rs 10,000 crore in FY24: ICRA

The overall domestic securitisation market has seen strong growth and is estimated to be around Rs 1.9 to 2 lakh crore for FY24, the ratings agency added

Suryoday Small Finance Bank: Why this stock is for the risk-takers

Return on asset stable, but core assets remain stressed

Banking Budget: Small finance banks and MFIs pitch for funding support and sector-oriented policies

Banking Budget 2024: Though some small lenders are looking with optimism to lend to SMEs, lending to micro and small industries stood at 17.2 percent of total advances in November 2023 versus 19.3 percent in November 2022, according to recent Reserve Bank of India (RBI) sectoral credit data.

Utkarsh Small Finance Bank: After a strong listing, is it still a good bet?

Stable margins, lower credit cost, and operating leverage to support return on assets.

Suryoday Small Finance Bank: Why this stock is for risk-takers

Portfolio diversification, lower credit cost and operating leverage remain key drivers to ROA

FD rates: Small finance banks that offer up to 8.6% interest on 3-year deposits

Small Finance Banks are offering higher interest rates to garner newer deposits.

Small finance banks and Fintechs - marriage of convenience?

Merging a fintech, which has agility and digital in mind, with banks which are used to hierarchy in everything they do, won’t solve for financial inclusion

Merger of two small finance banks reveals struggle to scale

Organic growth takes time and may increase the operating expenses of small finance banks. In a scramble for deposits and intensive competition in lending, SFBs have to look for inorganic growth.

LIC Housing Finance open to partner with SFBs to step up home loan business, says MD and CEO

The mortgage lender will target to compete with HDFC Bank’s home loan portfolio. The lender is also undergoing a structural overhaul and expansion with 44 new cluster offices.

Utkarsh Small Finance Bank’s IPO will test investor interest in microfinance

Utkarsh Small Finance Bank Ltd is offering its equity to investors at Rs 23-25 per share and is targeting to raise Rs 500 crore through the IPO.

Equitas SFB'S PN Vasudevan pitches for tech investment, sees growing quarters and fierce competition

After the Union Budget 2023-24 announcement and the Reserve Bank of India's (RBI) monetary policy committee (MPC) meeting on February 8, 2023, banks are luring more customers with high rates. Equitas Small Finance Bank's Managing Director and Chief Executive Officer (MD & CEO) PN Vasudevan sees fierce competition among small finance banks (SFB) and other big banks. He speaks to Moneycontrol exclusively on his bank's universal license status, outlook for FY24, financial status after the reverse merger and more.

Securitisation soars 42% to Rs 1.15 lakh crore till December quarter this fiscal; number of originators up 20% : Crisil

Led by small finance banks, securitisation activity became broad-based and the number of originators rose to 120 from 100 last year.

Why there's enough room for this small finance bank to rerate further

Management continuity, robust liability profile, and a de-risked asset book position Equitas SFB ideally for the economic upturn