SFBs likely to post broad-based gains

SMALLFINANCE BANKS (SFBs) posted strong, broad-based growth in both advances and deposits, indicating the sector's resilience despite ongoing stress in the microfinance segment.

- FE BUREAU

On the lending side, Suryoday SFB led the pack, reporting 23.5% year-on-year growth in gross advances. Ujjivan SFB followed with a 21.6% increase, while Capital SFB recorded growth of 19.8%. AU SFB, the largest player in the segment, sustained its momentum with a 19.3% rise, taking its loan book to nearly ₹1.3 lakh crore in the quarter ended December 2025. ESAF and Equitas also reported steady double-digit growth of 13.1% and 15.9%, respectively, signalling a stabilising credit environment.