Geographic diversification helps SFBs revive microfinance growth

Small finance banks are expanding microfinance lending rapidly due to geographical diversification. Equitas and Ujjivan witnessed significant growth in microfinance outstanding this fiscal year. Utkarsh, however, reduced its micro loan exposure due to concentration risks. ESAF Small Finance Bank also reported a rise in micro loans and gross advances. Overall, the sector shows signs of revival, offering new business opportunities.

Raccontata daeconomictimes.indiatimes.com