JosepSmall finance banks have carved a niche in India’s banking sector. These banks target small businesses, low-income households, and rural areas. They play a significant role in enhancing financial inclusion in the country. Small finance banks, like all banks, follow the rules set by the Reserve Bank of India, gaining customer trust. Several investors also consider investing in these stocks for long-term gains.
Despite their small size, these banks have a lot of potential. If you are considering investing, check out the small finance banks list to learn promising avenues for investment. The ever-evolving digital landscape and customer demand are making these banks more and more popular. However, research everything you can before making an investment and keep up with market trends. Small finance bank industry in India: A brief overview
The RBI oversees small finance banks, which are a subset of the banking industry. They were launched to promote financial inclusion by enabling basic banking services such as loans to the unserved and underserved sections of society.
Small and marginal farmers, small businesses, micro and small industries, and unorganized entities are among the customers. In India, the expansion of the list of small finance banks ensures that unbanked and underserved areas have access to bank credit and facilities. Top small finance bank stocks in India in 2025 by market capitalization
Due to its strong connection with economically disadvantaged groups, the small finance bank sector has seen significant growth. The RBI, through its regulatory support, facilitated the establishment of SFBs to enhance banking services accessibility. The table below lists the top small finance banks in India in terms of market capitalization.
Company Name Last Price (₹) % Change 52-Week High (₹) 52-Week Low (₹) Market Cap (₹ crore Sector
Bank – Private 694.40 -0.74 755.00 479.00 51,709.62 AU Small Finance Bank Ujjivan Small Finance Bank 44.86 2.00 54.74 30.85 8,680.71 Bank – Private
Bank – Private Equitas Small Finance Bank 63.93 -0.28 107.74 52.02 7,289.48 Jana Small Finance Bank 509.00 -1.94 760.85 364.00 5,352.65 Bank – Private
Bank – Private Utkarsh Small Finance Bank 24.00 -0.46 55.20 21.18 2,643.86 Data as of May 2025
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Small finance banks are a prominent segment in the Indian banking sector based on financial inclusion and the extension of services to low-income areas. Here is a list of the leading small finance banks in India.
- AU Small Finance Bank
Over the course of the past two decades, the primary focus of AU Small Finance Bank, which was originally known as AU Financiers (India) Limited and was established in 1996, has been on providing services to under-banked and unbanked regions. The bank has a full-scale product range. They include savings, current account services, ATMs, lockers, recurring deposits, fixed deposits, EMI calculators, interest calculators, and so on. During the financial year 2023, Au Small Finance Bank in India had a total income of 92.4 billion Indian rupees.
AU Small Finance Bank provides loans to individuals, such as personal loans, home loans, vehicle loans, loans against vehicles, and gold. Its insurance segment includes life, health, motor insurance, SME, and pocket insurance. - Ujjivan Small Finance Bank
In 2005, Ujjivan Financial Services Limited (UFSL) launched as an NBFC. It offers various financial services to the ‘economically active poor’ who do not receive enough support from financial institutions. In addition to other services, Ujjivan offers savings, current, and depository accounts. The bank offers various loans, such as vehicle loans, home loans, gold loans, MSME loans, crop loans, and so on. It has locations in each of the Union Territories and the 26 states. 3. Equitas Small Finance Bank Ltd
Since its inception in 2013, Equitas Small Finance Bank has been a wholly owned subsidiary of Equitas Holdings Ltd. It received its banking license in 2016. It provides services in the SME, LAP, vehicle, housing, and microfinance sectors. The bank is well-represented in 18 states and union territories with 964 banking outlets and 365 ATMs.
The bank’s major markets are Karnataka, Maharashtra, and Tamil Nadu, which account for the majority of its advances and deposits. The bank’s willingness to meet the requirements of a diverse range of customers is demonstrated by its extensive regional presence and diverse portfolio. 4. Jana Small Finance Bank Ltd
Jana Small Finance Bank, established in 2006, offers a wide range of banking and financial services. The bank has about 774 banking outlets in 22 states and 2 union territories, with a population of over 4.5 million active users. Specifically, 37% of its outlets are located in unbanked rural centers, pointing towards prioritizing financial inclusion.
The bank offers various loan products, including home loans, business loans, gold loans, and two-wheeler loans. These loans are all part of its Home 360 initiative, which aims to cater to customers’ various needs.
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