It is a hard reality of the banking sector that no matter how many banks are out there, these biggest banks usually aren’t able to provide banking services to everyone in the country, especially those who aren’t eligible for their services, mostly in the rural parts of the country. And that is precisely where the role of small finance banks comes into play. They are the ones to provide lower-income class people and those who don’t have any credit history, with basic financial services like depositing money and lending money as well. And if you are interested in knowing which are the best small finance banks (SFBs) that are currently doing pretty well in India, well, then you should keep on reading this post. That’s because here we are about to share a list of the top 10 small finance banks in India as of 2024, with you. Alright, here we go now.
1. Ujjivan Small Finance Bank
When we talk about small finance banks in India, you can’t just simply skip over Ujjivan Small Finance Bank and talk about some other SFBs, that’s not fair. Talking about this one though, well, it was started way back in 2005. But at first, it was just a microfinance company, but then went on to become a small finance bank in the year 2017, so, that’s very recently. All in all, renowned for helping the less fortunate, Ujjivan presents a wide array of goods meant to satisfy its consumers. As of now though, having a market value of around INR 5,678 crores, several branches and automated teller machines (ATMs) throughout different states help to sustain its great market presence.
2. Equitas Small Finance Bank
Beginning in Chennai, Equitas Small Finance Bank changed in 2016 from Equitas Microfinance Ltd into a small finance bank, and that was quite the turning point for them. Equitas, well-known for its great emphasis on financial inclusion, offers loans against property, auto loans, and savings accounts. Equitas, with a market value of around INR 3,000 crores, also stresses financial literacy, therefore guiding consumers in efficient money management.
3. Jana Small Finance Bank
Originally called Bharatha Swamukti Samsthe, Jana Small Finance Bank has an interesting past going back to its microfinance years, you know? Established in Bengaluru, it evolved into a small finance bank in 2018 and quickly grew to 771 banking locations spread across 22 states and two union territories, and that’s HUGE if you think about it for a sec. Jana, with a market value of around INR 700 crores, clearly emphasizes financial inclusion and consumer ease in its wide-ranging product offerings.
4. AU Small Finance Bank
From AU Financiers in 1996 to AU Small Finance Bank in 2017, this Jaipur-based bank has established a position for itself in the banking industry as an NBFC. Having a market value of INR 15,000 crores, AU Bank is well-known for its customer-centric strategy and provides customized financial products like business loans and car loans. That’s not it though, unlike many SFBs, its great focus on digital banking guarantees consumers a flawless financial experience. Among small financing banks though, AU Bank is a unique participant because of its strong risk management strategies and dedication to financial inclusion.
5. ESAF Small Finance Bank
Originally Evangelical Social Action Forum (ESAF), ESF Small Finance Bank started off with headquarters in Thrissur, Kerala, in 1995. Though, back in 2017 it changed its name to a small finance bank, emphasizing financial inclusion for all in the country, you know? And yes, as you can guess already, among the special products from ESF are financing for renewable energy projects and sustainable agriculture. With a market value of around INR 1,000 crores, ESF incorporates social and environmental governance ideas into its activities, therefore supporting community development projects and environmentally responsible practices all across the country, well, in most parts at least.
6. Capital Small Finance Bank
Founded in Jalandhar, Punjab, Capital Small Finance Bank is unique among small finance banks in India. And why’s that exactly? Well, originally Capital Local Area Bank in 2016, it is very common in northern Indian rural and semi-urban areas. With a market value of around INR 1,169.92 crores, Capital Bank sells the Kisan financial Card Scheme, therefore giving farmers access to necessary financial facilities.
7. Suryoday Small Finance Bank
Founded in 2009 as a microfinance company with headquarters in Navi Mumbai, Suryoday Small Finance Bank is Turning now to a small finance bank in 2017, and they sure want to promote financial inclusion utilizing home loans and commercial vehicle loans. Suryoday guarantees easy online and mobile banking services, well-known for its great emphasis on digital banking. Suryoday distinguishes itself with a market capitalization of around INR 1,260 crores by virtue of its dedication to tailored financial solutions and inclusive financing for all, no matter where they come from.
8. Utkarsh Small Finance Bank
Established in 2016 with an aim to assist underprivileged communities in northern and central India, Utkarsh Small Finance Bank is based in Varanasi, Uttar Pradesh. Its grassroots strategy and great regional goodwill enable it to provide customized financial solutions like micro banking group loans and reasonably priced home finance.
9. Fincare Small Finance Bank
Based in Bengaluru, Fincare Small Finance Bank came out of the union of Future Financial Services and Disha Microfin. Beginning operations in 2017, Fincare emphasizes helping small enterprises and micro-entrepreneurs. And yes, Fincare, with a market value of about INR 1,330 crores, has a big influence on the banking industry with its customer-centric strategy and dedication to financial inclusion.
10. North East Small Finance Bank
Established in 2017, North East Small Finance Bank, based in Guwahati, Assam, is unique as the sole small finance bank from the northeastern area of India. Having a market value of over INR 313.54 crores, the bank concentrates on offering financial services to Northeast underprivileged communities. North East Small Finance Bank uses low-cost operations and high-end technology to make banking easily available and simple for its clients by providing products such as SME loans and house loans.
Conclusion
There you have it. These are by far the best and top small finance banks that are literally doing exceptionally well in the country. So, whether you want some basic financial service, or it could be that you want to invest your money in the best SFBs in the nation, then you have this very list at your disposal. Give these a shot!
