ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Small Finance Banks

Creating Value for Stakeholders

This article depicts how small finance banks are instrumental in creating value to their stakeholders in multiple ways such as furthering financial inclusion, achieving satisfactory track record of performance, and listing on a recognised stock exchange.

 

Small finance banks (SFBs) are niche banks serving the unserved and underserved population at affordable cost with a view to furthering digital financial inclusion in India. The main objectives of the SFBs are promoting an institutional mechanism to mobilise savings from rural and semi-urban areas and provide credit to viable economic entities in local areas. However, unlike typical universal banks, the SFBs primarily focus on certain market segments such as small and marginal farmers, micro and small enterprises, unorganised sector entities, etc. The SFBs are authorised to sell mutual funds, pensions, insurance and other financial products and services to their customers. So it is pertinent to discuss in detail how SFBs are instrumental in creating value to their stakeholders.

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Published On : 20th Jan, 2024

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