List of Top 10 Small Finance Banks in India
Table of Contents
| Organization Name | Founded | Headoffice | Link |
| AU Small Finance Bank Ltd | 1996 | Jaipur | www.aubank.in |
| Capital Small Finance Bank Limited | 2000 | Jalandhar | www.capitalbank.co.in |
| Equitas Small Finance Bank | 2006 | Chennai | www.equitasbank.com |
| Fincare Small Finance Bank | 2017 | Bengaluru | www.fincarebank.com |
| ESAF Small Finance Bank | 1995 | Kerala | www.esafbank.com |
| Suryoday Small Finance Bank | 2008 | Mumbai | www.suryodaybank.com |
| Ujjivan Small Finance Bank | 2017 | Bengaluru | www.ujjivansfb.in |
| Utkarsh Small Finance Bank | 2017 | Varanasi | www.utkarsh.bank |
| North East Small Finance Bank | 2016 | Assam | www.nesfb.com |
| Jana Small Finance Bank | 2000 | Bengaluru | www.janabank.com |
| Shivalik Small Financial Bank | 1998 | Saharanpur, UP | www.shivalikbank.com |
| Unity Small Finance Bank | 2021 |
Top 10 Small Finance Bank in India
In the fast-evolving Indian banking universe, small finance banks (SFBs) were created by the RBI under the guidance of the Government of India in 2016 to sharpen focus on financial inclusion and to ensure the availability of banking products to the last-mile citizens of India.
10. North East Small Finance Bank
- Headquarter: Assam
- Founded: 2016
- Industry: Other Banks
- Symbol: nesfb
North East Small Finance Bank profile:
North East Small Finance Bank is formally known as nesfb, their presence in the Northeast state of India to establish Small Finance Bank
Operations Team supports the Branches in Account Opening, Account Servicing, CTS Clearing, MF Loan Disbursement, Treasury Back Office functioning, and Retail Asset Loan Operations (EDL, Home Renovation, Loan against Rent Receivable, Skill Development, etc).
NESFB asset products – Enterprise Development loan for greater than 5 lakhs to 25 Lakhs, Loan against Term Deposits, Personal Loan to Salaried Person, Piggery Loan, Skill Development Loan, Cash Credit Facility, Loan against Rent
Receivable.
North East Small Finance Bank Financial Analysis:
- Deposit: 1,27,72,308
- Advance: 1,65,46,629
- Profit of the year FY21: 71,825
9.Ujjivan Small Finance Bank
- Headquarter: Bengaluru
- Founded: 2017
- Industry: Other Bank
- symbol: USFB
Ujjivan Small Finance Bank profile:
Ujjivan Small Finance Bank is formally known as USFB. it is one of the leading small finance banks in India. Ujjivan Small Finance Bank continues to expand its reach and enhance customer experience.
USFB is Strengthening digital interfaces, across regions and languages, have empowered customers to seek timely and easy access to finance.
USFB Micro Banking
USFB is efforts towards “Sampoorna Family banking” by offering a holistic suite of products and services such as group
loans, individual loans, savings/deposit products, two-wheeler loans, insurance, payment solutions, remittances, and others.
USFB has expanded its product basket during the year and launched Gold loan, PM SVANIDHI loan, and alternate service channels such as Money Mitra points for Proximity banking services and also partnered with Airtel Payment bank outlets and PayNearby for repayments.
Rural Banking
Kisan Pragati Card product is also promoted by USFB and making to reach out to small and marginal farmers through farmers club and offer a wide range of products to fulfill their requirements
Digital Initiative
USFB has launched various modes of cashless EMI payment and partnered with Airtel Payments Bank including API-based digital repayment. USFB Micro Banking customers had registered on Mobile Banking and UPI platform. UPI QR is showing steady adoption, and growing month on month.
USFB Financial Analysis:
- Deposit: ₹13,136 Crores
- Net Interest Income: ₹1,729 Crores
- Revenue: ₹3,117 Crore
- Profit of the year FY21: ₹8 Crore
The key ratio of USFB
- Gross NPA: 7.1%
- Net NPA: 2.9%
- Return on Average Assets (ROAA): 0.04%
- Return on Average Networth (ROAE): 0.3%
- Net Interest Margin (NIM): 9.5%
- Capital Adequacy Ratio (CAR): 26.4%
8. Suryoday Small Finance Bank
- Headquarter: Mumbai
- Founded: 2008
- Industry: Other Bank
- Symbol: Suryoday Bank
Suryoday Small Finance Bank profile:
Suryoday Small Finance Bank is formally known as Suryoday, it is among the leading small finance banks (SFBs) in India. In 2009 Suryoday started their journey as Microfinance Institution, and now they have grown into a small finance bank in India.
Suryoday is emerging as a customer-focused partner and making access to funding for the unbanked and underbanked segments in India. Suryoday has tried to endeavor a strong and lasting relationship with customers in their time of need and this stands true to our ideology of customer-centricity.
Suryoday Bank’s asset products are categorized into
- inclusive finance loans comprising loans to joint liability groups (JLGs);
- commercial vehicle loans;
- affordable housing loans;
- secured business loans (SBL);
- micro business loans (T-Nagar);
- loans to financial intermediary groups (FIGs);and
- other loans.
Suryoday Bank Financial Analysis
- Net Total Income: 510 Crores
- Net Interest Income: 410 crores
- Operating Profit: 181.3 crores
- Profit Before Tax: 12.1 crores
- Profit of the year FY21: 12 crores
- Networth: 500 crores
Key Ratio of Suryoday Bank
- Capital Adequacy Ratio: 51.5%
- Cost-to-Income Ratio: 64.4%
- RoA: 0.2%
- RoE: 1%
- NNPA:4.7%
7. Capital Small Finance Bank Limited
- Headquarter: Jalandhar
- Founded: 2000
- Industry: Other Bank
- Symbol: CapitalBank
Capital Small Finance Bank Limited Profile:
Capital Small Finance Bank has started its career in Local area bank and It is India’s 1st Small Finance Bank after conversion from Capital Local Area Bank. Before conversion to a Small Finance Bank. Since then rapidly spread our
footprint across northern India.
Capital small is to offer low-cost world-class banking to customers, in India’s rural areas and it’s increasing rapidly in towns and cities, individuals across the social strata, and enterprises big and small.
They offer local communities safe and reliable money solutions while providing institutional credit to small borrowers in the agricultural, MSME, and retail segments.
Capital Small Finance bank: Agriculture
The capital bank has Kisan Credit Card Scheme continues to remain its flagship product, under which it provides farmers short and long-term essential credit facilities.
Capital MSME
the capital Bank provides both working capital and serves the long-term requirements of clients, including financing of stocks and book debts, fixed asset financing, and project financing, amongst other services to aid the smooth
running and expansion of clients’ business.
Capital Mortage
The Capital Bank continues to focus on small-ticket assets, providing much-needed support to the credit requirements of lower and middle-income groups,
Third-Party Products
The Bank provides its customers several third-party products, becoming a one-stop-shop for all their financial needs such as insurance, foreign exchange services, including money transfer and money exchange requirements.
- In Life insurance, the capital bank has tie-up with HDFC Life Insurance Co Ltd and ICICI Prudential Life Insurance Co Ltd
- In General Insurance & Health Insurance capital has tie-up with Bajaj Allianz General Insurance Co Ltd and SBI General Insurance Co Ltd
- In Forex Authorised Dealer Category capital has tie-up with AD 1 Banks
- In Money, Transfer capital has tie-up with Moneygram, Western Union, and Ria Money
Capital Small Finance Bank financial analysis:
- Total deposit: ₹ 5,221.07 crores
- Total Advances: ₹ 3,762.99 crores
- Net Interest Income: 198.61 crores
- Profit Before Tax: 53.74 crores
- Profit of the year FY21: 40.78 crores
Key Ratio of capital bank
- Capital Adequacy Ratio: 19.80%
- CASA Ratio: 40.07%
- Return on Equity: 9.51%
- Yield on Advances (YoA): 11.26%
- Return on AUM: 1.23%
6. Jana Small Finance Bank
- Headquarter: Bengaluru
- Founded: 2000
- Industry: Other Bank
- Symbol: JSFB
Jana Small Finance Bank Profile:
Jana Small Finance Bank Limited is formally known as JSFB is one of the leading Small Finance Banks of India. they have the second most geographically diversified portfolio with a pan-India presence among all Small Finance Banks in India
They had begun as an incubated initiative called Saghamithra Urban Programme (SUP), housed in an outstanding microfinance institution called Sanghamitra Rural Financial Services (SRFS), set up by one of India’s most respected rural NGOs called Myrada
Janalakshmi Financial Services is a for-profit NBFC-MFI providing financial inclusion services to underserved
customers in India. then Finally Jana Small Finance Bank has started its journey to serve customers.
Jana Small Financial Bank Financial analysis:
- Deposit: 12,385.93 crores
- advance: 11,611.92 crores
- Total Income: 2,732.72 crores
- Profit of the year FY21: 84.31 crores
5. ESAF Small Finance Bank
- Headquarter: Kerala
- Founded: 1995
- Industry: other bank
- Symbol: ESAF
ESAF Small Finance Bank Profile:
ESAF had started its journey as NGO after 1995 they had initiated Micro Enterprises Development (MED) services and it resulted in the form of ESAF Microfinance and Investments Pvt. Ltd.
ESAF is now Scheduled for commercial banks in India, and To achieve this goal, the Bank follows a social business strategy with a triple bottom line approach, emphasizing people, planet, and prosperity.
The Bank has adopted various policies to implement its triple bottom line approach, including an Environmental, Social, and Governance (“ESG”) policy.
- Pursuant to the ESG policy, it is committed to
- the protection of the environment and ensuring sustainable development,
- promoting financial inclusion and gender equality through specialised financial services; and
- establishing a governance framework to ensure accountability, transparency and compliance with internal and external ESG standards.
ESAF Micro Loan
The Bank continues to grow the microloans by cross-selling and up-selling to the microloan customer base and marketing our microloans to family members of microloan customers, thereby deepening its relationships
with them and becoming their trusted bank of choice.
ESAF Retail Loan
The retail loan portfolio includes housing loans, Loan Against Property, gold loans, auto loans, personal loans, clean energy loans, lease rental discounting, and education loans.
ESAF MSME
The MSME and corporate loan portfolio of the Bank has been growing. The target customers for the MSME and
Corporate loans are MSMEs, NBFCs, MFIs, and existing microloan customers who want to grow their business.
The ESAF Bank sources its customers for MSME and corporate loans through Branches, digital channels except
for corporate loans, direct sourcing, and third-party intermediaries, including business correspondence.
ESAF Agricultural loans
The Bank targets individual farmers and joint borrowers engaged in agriculture and allied activities, and the products are focused to meet the financing needs of farmers in agriculture and allied activities and include term loans, dairy development loans, farmer producer organization (FPO) finance, KCC, and agri gold loan.
ESAF Performance in FY21
A unique deposit scheme of ESAF Small Finance Bank, namely the Hrudaya deposit scheme, as the name suggests, stands for a social cause, through which, the Bank provides the customers an opportunity to be a part of the economic development of the bottom of the pyramid. As an organization, it strives for financial peace by bridging the gap between the haves and the have-nots.
ESAF Financial Analysis:
- Deposits: 8,999.43 Crores
- Gross Advances: 8,415.00 Crores
- CASA: 1,747.64 Crores
- NET WORTH: 1,301.19 crores
- Profit of the year FY21: 105.39 crores
Key ratio of EASF
- Net NPA Ratio: 3.88%
- Cost to Income Ratio: 60.31%
- RETURN ON ASSETS: 0.95%
- CAPITAL ADEQUACY: 24.23%
- RETURN ON EQUITY: 8.66%
4. Utkarsh Small Finance Bank
- Headquarter: Varanasi
- Founded: 2017
- Industry: Other Bank
- Symbol: USFBL
Utkarsh Small Finance Bank Profile:
Utkarsh Small Finance Bank is formally known as USFBL. It is one of the leading small finance banks in India. they have increased their presence in pan India and services to the unserved and underserved segment of customer
USFBL is servicing customers with a product portfolio spanning both deposits and liabilities. The deposit products comprise saving accounts, salary accounts, current accounts, recurring and fixed deposits, and locker facilities.
- USFBL Loan portfolio are;
- Microbanking Group Loans
- Microbanking Individual Loans
- Retail Loans
- Personal Loans
- Business Loans
- Commercial Vehicles & Construction Equipment Loans
- Loan Against Property
- Overdraft Loans Wholesale Banking
- Loans
- Housing Loans
Utkarsh Small Finance Bank Financial Analysis:
- Net interest income: 839.25 crores
- Deposits: 7,507.57 crores
- Operating profit: 438.34 crores
- Profit Before Tax: 151.44 crores
- Profit of the year FY21: 111.82 crores
Key ratio of USFBL
- Net interest margin: 8.20%
- Cost to income: 55.43%
- Return on Average Total Assets (ROAA): 1.05%
- Return on Average Net-worth (RONW): 9.99%
- Gross Non-performing assets (GNPA): 3.75%
- Net Non-performing assets (NNPA): 1.33%
- GLP/Capital and Reserves: 6.15
3. Fincare Small Finance Bank
- Headquarter: Bengaluru
- Founded: 2017
- Industry: Other Bank
- Symbol: fincare
Fincare Small Finance Bank Profile:
Fincare Small Finance Bank was the combination of 2 NBFC in Micro Finance Institution are Future Financial Service private LTD and Disha Microfin Private Ltd
Disha Microfin Private Ltd received a final license from RBI to operate banking operations for the customers. Fincare Small Finance Bank is a Scheduled Commercial Bank in India.
Fincare Small Finance Bank adopted the digital route as a business mandate in Saving A/C, Current A/C, Deposit, Gold Loan, Property Loan, 2-wheeler Loan, and so on
Fincare Performance in FY21
- Introduced a Video KYC (VKYC) option for account opening – this enables the customer to open a completely digital Full KYC account.
- Updated WhatsApp Banking – migrated from a Menu-driven interface to Natural Language Processing based Multi-lingual and conversational BOT
- Introduced tab-based gold loan application – this enables processing of gold loans, disbursement, collections, renewals & closures, all on the tab
- Introduced Virtual debit cards – this enables customers to use a debit card seamlessly in a contact-less manner
Fincare Small Finance Bank Financial Analysis:
- Net Interest Income: 700.9 crores
- Deposits: 5,31,850 Lakhs
- Advances: 5,30,112 Lakhs
- Profit Before tax: 1,26,527 lakhs
- Profit of the Year FY21: 113.1 crores
The key ratio of Fincare Bank:
- Net NPA: 2.80%
- Net Interest Margin: 9.87%
- Cost-to-Income Ratio: 55.93%
- Net worth: 1,017 crores
- Return on Assets: 1.44%
- Return on Equity: 11.8%
2. Equitas Small Finance Bank
- Headquarter: Chennai
- Founded: 2016
- Industry: Other Bank
- Symbol: EQUITASBNK
Equitas Small Finance Bank Profile:
Equitas bank is one of the leading Small Finance Bank (SFB) in India. They offer a wide range of banking products and services to customers. They have focused on serving financially unserved and underserved customer segments in India.
Equitas products are suited to a range of customers with varying profiles. These include the provision of small business loans comprising are:
- loan against property
- housing loans, and
- agriculture loans to microentrepreneurs,
- microfinance to joint liability groups predominantly comprising women, used and
- new commercial vehicle loans to drivers and micro-entrepreneurs,
- MSE loans to proprietorships, and
- loans to non-banking financial companies (NBFCs).
Equitas Bank Product-wise performance
- Small Business Loans (incl. Housing Finance): 7,971.14 crores
- Vehicle Finance: 4,530.11 crores
- Micro Finance: 3,235.73 crores
- MSE Finance: 1,179.67 crores
- NBFC Finance 782.66 Others: 225.25 crores
Equitas bank: Microfinance
Microfinance customers comprise mainly farmers, dairy farmers, micro-entrepreneurs like vegetable vendors, fruit and flower sellers, and others. they provide group loans to women customers to encourage them to start their small businesses or other income-generating activities.
The loans are offered for a tenure of two years, at interest rates between 23% and 24% per annum. Unsecured with no collateral, these loans are in effect secured through a peer-guarantee model to promote credit discipline through mutual support within the group, prudent financial conduct among the group, and prompt repayment of their loans. We have a 100% paperless loan disbursement process in this segment
Equitas Bank: Housing Finance
Primarily targeted towards self-employed individuals with limited access to loans from banks and larger housing finance companies, They provide loans for the purchase of a plot or a house, construction of a house, and home improvement/ restoration/extension.
Equitas Bank: Vehicle Finance
Providing vehicle loans to mostly first-time ‘formal financial channel’ borrowers purchasing used commercial vehicles, who have experience in logistics and small fleet operators. In-vehicle loan customers typically have limited access to bank loans and mostly have limited or no credit history.
Equitas Bank: Micro and Small Enterprise (MSE) Finance
MSE Finance aims at facilitating the expansion and modernization of businesses, including acquiring fixed assets and meeting working capital needs.
Equitas bank reaches out to enterprises engaged in business activities that maintain formal records for credit evaluation, primarily in urban and semi-urban areas.
Working capital loans are offered in the form of
• Fund-based facilities, including cash credit limits, overdraft limits
• Non-fund-based facilities like bank guarantees and letters of credit
MSE also offer Term Loans for specific purposes to businesses with an annual turnover of ₹10-15 crores
Equitas Small Finance Bank Financial Analysis:
- Net interest income: ₹1,797.96 crores
- Operating profit: 886.58 crores
- Profit before tax: 511.26 crores
- Profit of the year FY21: 384.22 crores
The key ratio of Equitas
- CASA ratio: 34%
- Capital Adequacy (CRAR): 24.18%
- RoA: 1.70%
- RoE: 12.70%
1. AU Small Finance Bank Ltd
- Headquarter: Jaipur
- Founded: 1996
- Industry: other bank
- Symbol; AUBANK
AU Small Finance Bank Profile:
AU Small Finance Bank started theirs in Non-deposit taking Non-Banking Finance Company (NBFC). They have performed their operation for served and unserved low-middle-class individuals.
AU small finance bank has 20 years of experience with a large customers base in Vehicle Loan, Business Loan, and Housing Loan segments.
After 2016 with the guidelines of RBI Au Bank has been licensed and imperative to note that 7 out of 10 SFBs still have a very high share of MFI loans whereas AU is the only top 3 SFB with zero direct MFI loan exposure
Au small Fianance bank: Vehicle Loan
In the vehicle loan, Au small started their performance including new vehicle cars and used vehicle cars the availability and reliability on customer data has improved.
Evolution of the “Vaahan” app – One can use this app to check vehicle details online. However, this needs to be strengthened further to get all vehicle data; right from age of the car to the number of hands it has changed.
Au Small: MSME
AU Bank is focused to bring more Micro enterprises into the fold of formalized credit and we have emerged as one of the prominent lenders to micro MSMEs in the last decade in North, Central, and Western India.
AU Small Housing Loan
AU with beginning its presence in the affordable housing segment based on the customer base and needs that include Home purchase, top-up home loan, home construction, Loan against property, so on.
AU Small Finance Bank Financial Analysis:
- deposits: ₹35,979 crore
- Net Interest Income: 2,261 crores
- Profit Before Tax: 1,459 crores
- Profit of the year FY21: 1,171 crores
Key Ratio of AU Small
- Gross NPA: 4.25%
- Net NPA stood: 2.18%
- Capital Adequacy Ratio (CRAR): 23.4%
- RoA: 2.5%
- RoE: 23.4%
- Net Interest Margin: 5.3%
