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Small Finance Bank serves priority sector: Reserve Bank – Small Finance Bank Reserve Bank serves priority sector in profit

Small Finance Bank serves priority sector: Reserve Bank – Small Finance Bank Reserve Bank serves priority sector in profit
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Small Finance Bank serves priority sector: Reserve Bank – Small Finance Bank Reserve Bank serves priority sector in profit

Small Finance Bank serves priority sector: Reserve Bank – Small Finance Bank Reserve Bank serves priority sector in profit

Mumbai, Aug 17 (PTI) Newly established microfinance banks (SFBs) are serving the underprivileged and marginalized sections of the society and are making a profit, according to an analysis by Reserve Bank of India officials.

This class of banks was started in 2017 and many of these institutions are microfinance institutions, which have transformed themselves into lenders and given them access to public deposits.

According to the analysis by Nitin Kumar and Sarita Sharma, “SFBs were licensed for the purpose of serving the deprived and neglected sections of the society. Preliminary analysis shows that SFB is a leader in priority sector service.”

It said the study included a preliminary assessment of SFB’s performance for initial policy inputs and that this assessment should not be considered a central bank approach.

According to the analysis, a basic check reveals a relatively high credit deposit ratio of SFBs and most of them have shown good profits with further improvement in recent quarters.

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