SFBs may grow at 30% over medium-term, need Rs 6,000cr capital by FY2

Small finance banks (SFBS) are likely to grow at 25-30 percent over the medium-term and if they can arrange additional external capital of Rs 4,000-6,000 crore till FY23, says a report.

These banks have witnessed growth in assets under management, deposits, and better return on their equities, besides mitigating business risks through diversification.
 

In the nine-months to December 2018, these banks have reported an annualised growth of 33 percent in the assets under management to Rs 64,325 crore.
 

"We expect small finance banks' loan portfolio to grow at 25-30 percent over the medium-term, with the share of microfinance declining to around