Small Finance Banks - Coming Out Of A Transition; Entering Expansionary Return Ratio Phase: ICICI Securities
A “centre leader” counts money to be distributed as a micro-loan in India. (Photographer: Adeel Halim/Bloomberg)

Small Finance Banks - Coming Out Of A Transition; Entering Expansionary Return Ratio Phase: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

India’s Small Finance Banks have carved a niche in small-ticket lending (~8% of systemic credit) in a short span of four years.

They command 6% market share in small loans and incremental market share of more than 20% pre-Covid-19.

Further, SFBs are improving their rural market share at an accelerated pace as seen in their ~2% market share in rural credit versus ~1% in systemic credit.

We believe, SFBs are well positioned to seize the significant lending opportunity of Rs 10 trillion (10 times cumulative SFB assets under management as at December 2020) for their future growth.

Click on the attachment to read the full report:

ICICI Securities SFB sector thematic .pdf

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