Business and Finance
Business and Finance
Tue, January 14, 2025
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Small Finance Banks' growth to moderate to 18-20 pc in FY2025: Report
- After experiencing robust growth in FY2023 and FY2024, small finance banks (SFBs) are likely to see a moderation in growth to 18-20 per cent in FY2025, down from 24 per cent in FY2024, according to ICRA.
The article from ThePrint discusses a report by ICRA which forecasts that the growth of small finance banks (SFBs) in India will moderate to 18-20% in FY2025, down from 27% in FY2024. This moderation is attributed to several factors including a high base effect, increased competition from larger banks, and a focus on maintaining asset quality. The report highlights that while SFBs have been expanding their loan portfolios, particularly in microfinance and small business loans, the growth rate is expected to stabilize as these banks aim to manage risks better. Additionally, the article notes that SFBs are likely to continue their focus on underserved segments, but with a more cautious approach to lending, aiming for sustainable growth rather than rapid expansion. The asset quality of SFBs is expected to remain stable, with gross non-performing assets (GNPA) projected to be around 2-3%.
Read the Full ThePrint Article at:
[ https://theprint.in/economy/small-finance-banks-growth-to-moderate-to-18-20-pc-in-fy2025-report/2444570/ ]
Read the Full ThePrint Article at:
[ https://theprint.in/economy/small-finance-banks-growth-to-moderate-to-18-20-pc-in-fy2025-report/2444570/ ]
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