Best 10 Small Finance Banks in India

Small Finance Banks are a fast-growing industry in India, and they play a crucial role in supporting the country’s rural and semi-urban economies. These banks offer specialized financial services, including savings accounts, loans, and insurance, to underserved and underprivileged populations such as small business owners, farmers, and low-income households.

Small finance banks are effectively bridging the gap between traditional banking institutions and the financially vulnerable populations in India’s remote areas. Overall, small finance banks are an essential component of India’s financial landscape and contribute significantly to its economic growth and development.

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Is it safe to keep account in Small Finance Banks?

One liner answer to this question is Yes, it is safe and they are as safe as money kept in the account of any other banks savings account. Small finance banks in India are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) which insures all bank deposits up to Rs. 5 lakh. DICGC is a subsidiary of the Reserve Bank of India (RBI) and provides deposit insurance for various types of bank accounts, including savings accounts, fixed deposits, and recurring deposits

Which are 12 Small Finance Banks? Small Finance Banks in India

List of Scheduled Small Finance Banks
Sr. No.Name of the BankHeadquarter
1.Au Small Finance Bank LimitedJaipur
2.Capital Small Finance Bank LimitedJalandhar
3.Equitas Small Finance Bank LimitedChennai
4.Suryoday Small Finance Bank LimitedMumbai
5.Ujjivan Small Finance Bank LimitedBengaluru
6.Utkarsh Small Finance Bank LimitedVaranasi
7.ESAF Small Finance Bank LimitedKerala
8.Fincare Small Finance Bank LimitedBengaluru
9.Jana Small Finance Bank LimitedBengaluru
10.North East Small Finance Bank LimitedAssam
11.Shivalik Small Finance Bank LimitedNoida
12.Unity Small Finance Bank LimitedMumbai

Listed Small Finance Bank stocks in India

Name of the Company52 week Low52 week HighMarket Capitalization
AU Small Finance Bank₹ 539₹ 732.98₹ 45,285.32 Cr
Equitas Small Finance Bank₹ 37.45₹ 77.90₹ 7,583.75 Cr.
Ujjivan Small Finance Bank₹ 13.50₹ 33.50₹ 5,228.84 Cr.
Suryoday Small Finance Bank₹ 77₹ 153.70₹ 1,064.24 Cr.

AU Small Finance Bank

Incorporated in 1996 as a vehicle finance company based in Jaipur, this company transformed into a small finance bank in 2017 and subsequently earned a spot on the Fortune 500 list of companies in India.

The company has a market capitalization of ₹ 45,285.32 Cr and has made profit worth ₹1103 Cr in 2022.It has a P/E Ratio (TTM ) of 29.50 and an EPS (TTM) of 19.69.

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Equitas Small Finance Bank

Equitas Small Finance Bank, whose holding company is Equitas Holding, was established in 2016 and was listed in 2020. As of now, the company has a market capitalization of ₹7583.75 crore and has recorded a profit of ₹281 crore in 2022. Its P/E Ratio (TTM) stands at 15.83 and the EPS (TTM) at 3.05. Over the past two years, the stock price of this bank has witnessed a growth of 58.68%

Ujjivan Small Finance Bank

With a market capitalization of ₹5288.84 crore, this company has incurred a loss of ₹415 crore in 2022. The company’s P/E Ratio (TTM) is 223.28 and the EPS (TTM) is 0.12. Despite this, the company’s stock price has risen by 12% in the last twelve months.

Suryoday Small Finance Bank

This is a microfinance institution that has been converted into a small finance bank and specializes in retail banking and providing loans to MSMEs. Its market capitalization currently stands at ₹1064 Crores, but it incurred losses of ₹93 crores in the year 2022. The bank’s earnings per share over the trailing twelve months stands at -3.55, and its price-to-book ratio is 0.72. Over the past three years, its stock price has declined by 65.75%.


How many Small Finance Banks are there in India?

Recently, there are 12 Small Finance Banks in India

Which SFB started its operation first in India?

After converting from Capital Local Area Bank, Capital Small Finance Bank Limited began its operations on April 24, 2016, as India’s first Small Finance Bank.

Is Small Finance Banks safe to keep money?

Yes, it is safe and they are as safe as money kept in the account of any other banks savings account.

Which is the latest Small Finance Bank got license from RBI?

Unity Small Finance Bank Ltd is the latest Small Finance Bank which got license from RBI

Can Small Finance Bank become bank?

Small finance banks provide services that are similar to those offered by regular commercial banks. However, if they meet the required criteria, the Reserve Bank of India (RBI) allows small finance banks to transform into full-fledged banks.

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