Page 3 - Small Finance Banks

Strong loan growth for small finance banks in Q1FY25, Casa declines

The deposits of the SFBs posted a double-digit increase from the quarter ended in June 2024. Deposits of Equitas SFB grew by 35.40 per cent, Capital SFB by 10 per cent, and Suryoday SFB by 42 per cent

'Most SFBs would not clamour to become universal banks if RBI eases curbs'

Highlighting the importance of small finance banks (SFBs) in fostering financial inclusion, former Financial Services Secretary D K Mittal said most of them would not clamour to become universal banks if some restrictions are eased by the Reserve Bank. To promote financial inclusion in the country, RBI, in 2014, issued the guidelines for licensing of small finance banks (SFBs) in the private sector. Following this, RBI granted licences to a dozen entities. As per the RBI guidelines, SFBs are required to open at least 25 per cent of their branches in unbanked rural centres and are mandated to provide 75 per cent of loans to the priority sector compared to 40 per cent for the commercial banks. Last month, the RBI invited applications from small finance banks meeting specified criteria, including a minimum net worth of Rs 1,000 crore, for becoming regular or universal banks. "While issuing guidelines for Small Finance Banks to become universal banks, it would be in the larger nationa

ESAF SFB evaluating conversion to universal bank: MD & CEO Paul Thomas

In April, the Reserve Bank of India (RBI) came out with guidelines for the voluntary conversion of SFBs to universal banks.

Have restrained ourselves from taking SFB route: CreditAccess Grameen MD

Hebbar tells that it is diversifying its loan portfolio by increasing the share of non-micro loans and the liability book by raising funds internationally

ESAF SFB Q4 results: Net profit slips 57% to Rs 43 cr, NII up 18%

ESAF Small Finance Bank on Thursday reported 57 per cent decline in net profit at Rs 43.4 crore for the fourth quarter ended March 2024 on account higher provisions. The Kerala-based bank had posted a net profit of Rs 101.4 crore for the year-ago period. Total income increased to Rs 1,152 crore in March quarter from Rs 868 crore a year ago, the bank said in a regulatory filing. Interest income grew to Rs 1,002 crore during the period under review from Rs 774 crore in the corresponding quarter a year ago. Net Interest Income (NII) grew 18.4 per cent to Rs 591 crore compared to Rs 499 crore in the same quarter a year ago. The bank's Gross Non-Performing Assets (NPAs) deteriorated to 4.76 per cent of gross advances as of March 31, 2024, from 2.49 per cent by the end of March 2023. Net NPAs also increased to 2.26 per cent of the advances from 1.13 per cent at the end of 2023. As a result, provision for bad loans and contingencies rose nearly three-fold to Rs 226 crore as against Rs

Best of BS Opinion: Socially construct AI, encouraging investment, more

Here is the best of Business Standard's opinion pieces for today

Small is beautiful, but not always

For most SFBs, being a small bank is part of their journey, not the destination

RBI approves appointment of Sanjeev Nautiyal as MD&CEO of Ujjivan SFB

Third CEO in five years; current CEO Davis to be relieved early

Infibeam's CCAvenue partners with Shivalik SFB to improve merchant access

Small finance bank's account holders will be able to make payments on websites 'powered' by CCAvenue, according to agreement

Small finance banks to seek RBI clarification on loan book diversification

The AU SFB board will discuss future course of action soon. It says the focus is now on integrating with Fincare

AU Small Finance Bank stock rallies over 6% on universal banking hopes

The central bank has laid down qualitative criteria of a satisfactory five-year track record, which will be evaluated post-application made by SFBs

Need more competition

Small finance banks have a clear path

RBI lays out norms for voluntary conversion of SFBs into universal banks

AU SFB, a few others seen as contenders for conversion

RBI invites pleas from eligible SFBs to become regular, universal banks

Reserve Bank of India on Friday invited applications from small finance banks meeting specified criteria, including a minimum net worth of Rs 1,000 crore, for becoming regular or universal banks. The RBI, in November 2014, issued the guidelines for licensing of small finance banks (SFBs) in the private sector. There are about a dozen SFBs, including Au Small Finance Bank, Equitas Small Finance Bank and Ujjivan Small Finance Bank. An SFB aiming to become a universal bank should have a minimum net worth of Rs 1,000 crore as at the end of the previous quarter (audited) and the shares of the bank should have been listed on a recognised stock exchange, the central bank said. It should also have a net profit in the last two financial years and GNPA and NNPA of less than or equal to 3 per cent and 1 per cent, respectively, in the last two financial years. Other conditions include a prescribed CRAR (capital-to-risk weighted assets ratio) requirement and a satisfactory track record of ...

Small finance bank stocks are on an uptrend. Does the rally have more legs?

Analysts believe that small finance banks have a much bigger role to play in the overall banking sector

Home loans: To top up or not to top up?

The home loan top-up, a kind of secured multipurpose personal loan, is on the regulator's radar. Rightly so

RBI rejects two applications for small finance bank under extant guidelines

The Reserve Bank of India has rejected two more applications, including that of Dvara Kshetriya Gramin Financial Services, for setting up small finance banks. Earlier in July 2023, it had rejected three applications. RBI had received about a dozen applications to set up banks under the guidelines for 'on tap' Licensing of Universal Banks and Small Finance Banks (SFBs). The guidelines for 'on tap' licensing of Universal Banks and SFBs in the private sector were issued on August 1, 2016, and December 5, 2019, respectively. In a statement on Friday, the RBI said the examination of two more applications for setting up a small finance bank has been completed as per the procedure laid down under extant guidelines. Based on the assessment of the applications, the central bank said it did not find applicants -- Dvara Kshetriya Gramin Financial Services Private Limited and Tally Solutions Private Limited -- suitable for granting of in-principle approval to set up a small finance bank. How

RBI turns down request to remove 'small finance' tag from bank name

Retaining it crucial given mandate for financial inclusion

SFBs securitise loans worth Rs 9,300 crore to generate liquidity

The securitisation volumes in Q4 FY24 witnessed healthy growth of 26 per cent over the preceding quarter, rising to Rs 48,000 crore

Sidbi plans to raise Rs 5,000 cr via rights issue next financial year

Small Industries Development Bank of India (SIDBI) on Tuesday said it plans to raise Rs 5,000 crore from rights issue next financial year to fund business growth. The refinancing entity for SME finance is witnessing a strong credit growth and to further grow the business, capital would be required, he said. The bank is looking to mobilise Rs 5,000 crore from rights issue in the next fiscal, SIDBI chairman and managing director S Ramann said on the sidelines of launch of a credit programme for Jan Aushadhi Kendras here. He said the government is the biggest shareholder and SIDBI has approached them requesting their participation in the rights issue, he said. Government of India holds a 20.85 per cent stake as of March 31, 2023. Besides this, State Bank of India owns 15.65 per cent, while the share of Life Insurance Corporation of India (LIC) stood at 13.33 per cent as of March 31, 2023. The rest is held by other Public Sector Banks (PSBs) and institutions. He said the loan book of