SFBs need to widen deposit base by Rs 60,000 crore in 2 yrs: Report

Granular deposits, which are current and savings deposits and retail term deposits, accounted for 48 per cent of total deposits in FY19

Small finance banks (SFBs) have to garner at least Rs 60,000 crore in deposits over the next two years to support an asset growth of 30 percent and to maintain borrowings at 25 percent of liabilities, says a report.
 

Total deposits of SFBs jumped 130 percent in FY19, leading to an increase in their share of deposits to 59.6 percent of non-equity liabilities in FY19.
 

"SFBs need to ramp up their deposit base quickly to replace grandfathered loans and gradually build granular deposits," India Ratings said in a report on Thursday.
 

The agency expects the share of granular deposits to