Balance sheets of SFBs are larger than those of universal banks: Panel

While the Reserve Bank of India (RBI) allows small finance banks (SFBs) to apply to be universal banks after five years of their operation, none of these lenders have done so, despite most of them being eligible for it. Participants at a panel discussion at the Business Standard BFSI Insight Summit 2023 say that SFBs need diverse product lines before they apply for universal bank licence, and should not lose sight of their focused area when they do so. The discussion titled ‘Can SFBs become universal banks’ comprised heads of leading SFBs such as Sanjay Agarwal, managing director (MD) &