Small finance banks have been established to provide financial assistance to areas far away from the city i.e. villages and semi-urban areas. Top small finance bank in India have main objective is to provide financial services to micro, medium and small enterprises (MSME), small business units and marginal farmers.
Even if you live in the most remote part of the country, you will get banking services even there. Here is information about some of the top small finance banks of India.
What is small finance bank?
SFC i.e. Small Finance Banks are financial organizations whose main objective is to promote financial inclusion by providing banking services in the unbanked areas of the country. Under the Companies Act 2013,
small finance banks are registered as public limited companies.
Small finance Bank also caters to the needs of small firms, micro businesses, small businesses and other organizations.
The first aim of small finance banks is to reach financial services in semi-urban areas and rural areas.
Small finance banks provide loan facilities to organizations in the unorganized sector like small farmers, micro businesses and small businesses.
Top small finance banks in India
1. AU small finance bank
AU small finance bank was established in 1996. Initially, this Jaipur based small finance bank was established as a vehicle finance company under the name AU Financiers (India) Limited.
In the year 2017, its founding director Mr. Sanjay Aggarwal converted it into a small finance bank.
At present its market capitalization is Rs 41,427.00 crore. It is a part of the Fortune 500 companies in India. Also RBI approved to operate it as a scheduled commercial bank.
2. Equitas Small Finance Bank
The headquarters of this bank is located in Chennai, Tamil Nadu. In the year 2007–11, this entity started operations in the areas of microfinance, vehicle and housing finance. Later, the license to form a small finance bank was obtained in the year 2016 by merging all the subsidiaries.
You can include Equitas Small Finance Bank stock in your plan to build a diversified portfolio. This is because this small finance bank has performed excellently in the last two years and currently its market capitalization is Rs 6,949 crore.
Apart from this, it is also linked to many financial services like HDFC and Nio etc.
3. Ujjivan Small Finance Bank
This small finance bank is located in Bengaluru. It was established in 2005. It was operated as a non-banking financial company and was named Ujjivan Financial Services Limited.
In the year 2017, it was converted into a small finance bank. It provides a good quarter to its customers as it focuses on mass markets. Its market capitalization is Rs 5,678 crore. Its main objective is to provide financial services to the economically active poor sections.
4. Utkarsh Small Finance Bank
Utkarsh Small Finance Bank Limited was established in April 2016. It is an Indian scheduled small finance bank. Earlier its name was Utkarsh Micro Finance Private Limited.
Presently its headquarters is located in Varanasi, Uttar Pradesh. Subsequently, it expanded its operations to various states in India – Bihar, Chhattisgarh, Madhya Pradesh, Jharkhand, Haryana and Uttarakhand.
The bank has also attracted many international investors like Commonwealth Development Corporation, ICICI Prudential Life Insurance, Norwegian Microfinance Initiative, HDFC Standard Life etc.
The market capital of this small finance bank increased significantly to Rs 1,350 crore.
5. Fincare Small Finance Bank
It was formed by the merger of two micro non-banking financial institutions, Future Financial Services and Disha Microfin. This small finance bank started commercial financial services after obtaining a license from RBI in the year 2017.
Its headquarters is located in Bengaluru. Its market capital is Rs 1,330 crore. From this bank you can avail all smart banking products including deposits, credit, cash overdraft, insurance, general insurance, micro loans, two wheeler loans, gold loans etc.
6. Suryoday Small Finance Bank
Suryoday Small Finance Bank evolved from Suryoday Micro Finance. Its headquarters is located in Navi Mumbai, Maharashtra.
This small finance bank with a market capitalization of Rs 1,216 crore claims to provide the best customer experience.
Apart from this, it provides digital banking services and different types of loans like shopkeeper loans, MFI loans, development loans etc.
Some other small finance banks are as follows:-
- North East Small Finance Bank
- Capital Small Finance Bank
- ESAF Small Finance Bank
- Jana Small Finance Bank
In this blog you know about some top small finance banks of India. The main function of these banks is to provide financial assistance in semi-urban and rural areas.
You can get immense profits by investing in shares of small finance banks as they have high growth potential. If you want to get any other information related to Small Finance Bank, then tell us by commenting.
Q. 1 Which SFB is best?
Ans. Some best SFB are –
ESAF Small Finance Bank.
Utkarsh Small Finance Bank.
Fincare Small Finance Bank.
Equitas Small Finance Bank.
AU Small Finance Bank Ltd.
Q.2 Which is the oldest small finance bank in India?
Ans. Capital Small Finance Bank is India’s first small finance bank. It was founded in April 2016 as a microfinance lender.
Q. 3 What is the highest FD rate SFB?
Ans. The highest interest rate is 9.10 per cent.