Secured vs unsecured loan debate can't ignore financial inclusion: SFBs

'SFB licences were given by the RBI for the purpose of financial inclusion'

In recent years the small finance bank (SFB) space has witnessed one upheaval after another. Just as the sector had regained its footing after demonetisation, the Covid-19 crisis struck, dealing a blow to asset quality, as non-performing loans piled up. While a transition to a greater share of secured loans is underway, the sector should not lose sight of its original mandate, according to participants at the Business Standard Round Table at the BFSI Insight Summit 2022, titled: Can Small Finance Banks make it big?

The participants included Baskar Babu Ramachandran, co-founder & CEO, Suryoday SFB; Samit Ghosh, founder, Ujjivan