small finance banks and their headquarters

List Of Small Finance Banks In India And Their Headquarters, Heads And Taglines

Banking Awareness

Small Finance Banks and their Headquarters , Taglines

Dear aspirants List of Small Finance Banks and their headquarters is very important topic for Bank exams. In this article we presents you complete list of small finance banks and their headquarters  along with their heads and taglines.This is very helpful topic for IBPS exams, IBPS RRB, SBI PO, SBI clerk and other bank exams.This is a must read topic for a Bank aspirant. It is actually quite easy and scoring.

With a need of financial inclusion in the country, RBI and central government has taken many steps at different times. Taking a further step, RBI gave differentiated licenses for specific activities to new set of banks named Payments Banks and Small Banks.

What is a Small Finance Bank ?

Small Finance Banks are physical banks whose aim is to provide basic banking products such as deposits and supply of credit, but in a limited area of operation. Small banks are expected to meet credit and remittance needs of small businesses, farmers, micro and small industries, unorganised sector ,low income households and migrant work force through high technology-low cost operations.Currently there are 10 small finance banks in India.They are:

1.AU small finance Bank Limited

2.Capital Lab Small Finance bank (India’s first small Finance Bank)

3.Equitas small Finance Bank

4.ESAF Small Finance Bank

5.FINCARE small finance Bank (previously it is Disha microfin Limited)

6.Janalakshmi small Finance Bank (Jana Small Finance Bank)

7.North East Small Finance Bank

8.Suryodaya Small Finance Bank

9.Ujjivan Small Finance Bank

10.Utkarsh Small Finance Bank

Complete List of Small Finance Banks and their Headquarters , Heads and Taglines :

Name of Small Finance Bank Headquarters  MD & CEO Taglines
AU small finance Bank Limited Jaipur,Rajasthan Sanjay Agarwal ‘Chalo Aage Badhe’
Equitas small Finance Bank Chennai,Tamilnadu P N Vasudevan

Arun Ramanathan(Chairman)

‘Its Fun Banking’
Capital Lab Small Finance bank Jalandar,Punjab Sarvajit Singh Samra

Inder Krishan sardana(Chairman)

Viswas se Vikas tak’
ESAF Small Finance Bank Thrissur,Kerala K Paul Thomas

Raveendranathan Prabha (chairman)

Joy of Banking’
FINCARE small finance Bank Bengaluru,Karnataka Rajeev Yadav ‘a new era in smartbanking begins’
Janalakshmi small Finance Bank (Jana SFB) Bengaluru,Karnataka Ajay Kanwal Likho Apni Kahaani
North East Small Finance Bank Guwahati,Assam Rupali Kalita Your Door step Banker’
Suryodaya Small Finance Bank Navi Mumbai,Maharashtra R Bhaskar Babu A bank of smiles
Utkarsh Small Finance Bank Varanasi,U.P Raghvendra Singh Aapki Umeed Ka Khata’
Ujjivan Small Finance Bank Bengaluru,Karnataka Samit Ghosh We belive in your belief

Guidelines and Regulations Provided by RBI for Small Finance Banks :

  • Every small finance bank must have the words “small finance bank” in its name.
  • Minimum paid-up equity capital requirement of Rs 100 crore.
  • A fundamental requirement is that it must have 25% of its branches set up in unbanked areas.
  • 75% of its Adjusted Net Bank Credit(ANBC) should be advanced to the priority sector as categorized by RBI.
  • They cannot set up subsidiaries to undertake non-banking financial service activities.
  • Maximum loan size to a single person cannot exceed 10% of total capital funds; cannot exceed 15% in the case of a group.
  • At least 50% of its loans should constitute loans and advances of up to 25 lakh.
  • Small banks can undertake financial services like distribution of mutual fund units, insurance products, pension products, and so on, but not without prior approval from the RBI.
  • Small Finance banks will be Scheduled Bank status once they commence their operations, and found suitable as per Section 42 (6)(a) of the Reserve Bank of India Act,1934.
  • If the initial shareholding by promoter in the bank is in excess of 40 percent, It should be brought down to 40 percent with in a period of five years from the date of commencement of business of the bank. And Promoter’s stake should brought down to 26 percent within 12 years from the date of commencement of business of the bank.
  • The Foreign shareholding in the small finance bank would be as per the Foreign Direct Investment (FDI) policy for private sector banks as amended from time to time.Currently It is 74 percent.

Features of Small Finance Banks :

  • Small Finance Banks Can Accept all types of Deposits like Savings, Current, Fixed and recurring deposits.
  • Unlike payment banks, small finance banks will be allowed to lend money also.
  • For the initial 3 years, prior approval will be required for branch expansion.
  • They are not allowed to lend the deposited money to big businesses or industries.
  • Their targets are small businesses and MSMEs.
  • Small Finance Banks will provide banking services to small farmers, micro and small industries , the unorganized sector.

Now  its time to end this article, we hope you have learned list of all small finance banks and their headquarters and taglines and also heads of small finance banks .You can ask us for any queries and don’t feel shy to enter your valuable suggestions and comments.If you have found any mistake in this article feel free to report us. See you in the next session with some other interesting tutorials until then stay with us.

Wish you Good Luck…!

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