New Delhi, Oct 28 || Advances of small finance banks (SFBs) are poised to cross Rs 2 lakh crore this fiscal -- marking a growth of 16-17 per cent year-on-year (YoY), and surpassing last fiscal’s 13 per cent growth rate, a report said on Tuesday.
The uptick will be driven by continued expansion in the non-microfinance segments, coupled with the calibrated recovery of the microfinance loan book from the degrowth seen last fiscal.
Amid the healthy credit growth, building a granular and sustainable liability franchise remains crucial for SFBs, Crisil Ratings said in its report.
According to the report, the share of non-microfinance advances in SFB loans had already risen to 67 per cent as of March 2025, from 50 per cent as of March 2022.