Small Finance Banks’ Advances to Cross ₹2 Lakh Crore This Fiscal: Crisil Report
The total advances of small finance banks (SFBs) are expected to surpass ₹2 lakh crore in the ongoing financial year, reflecting a robust growth of around 16 percent, according to a report by Crisil Ratings.

The agency attributed this growth to the steady expansion in non-microfinance portfolios and a gradual recovery in the microfinance loan segment, which had witnessed a slowdown in the previous fiscal.

“Segmental diversification has been a long-standing growth driver for small finance banks, most of which were earlier microfinance institutions (MFIs) before converting into banks,” Crisil noted.

The report also observed that this diversification—into sectors such as affordable housing, MSME loans, and retail finance—has strengthened the asset quality and stability of SFBs.

With improving financial health, stronger capital buffers, and growing deposit bases, SFBs are expected to maintain their upward momentum in the coming quarters, the report added.