AU SFB to Ujjivan SFB: Where do small finance banks go from here?

UCBs that aspire to become SFBs do not want the same limits on loan size and priority sector targets that SFBs have, especially when not many of them have sought to become SFBs

It does not depend so much on whom you ask but on whether you want them to speak on the record or off. On record, they say the correct things: Small finance banks (SFBs) are meant to enhance financial inclusion, act as savings vehicles, and be vendors of credit to small businesses, marginal farmers, and the unorganised sector through high-technology, low-cost operations.

Off the record, it is a different story.

Both the stories acquire relevance with recent developments. There is talk of one SFB being in preliminary talks to acquire another. Last year, Unity SFB, a joint venture between Centrum