Abstract
Small Finance Banks (SFBs) are specialised banking institutions incorporated to serve the unbanked, small and underserved customers. Their primary motive is to improve financial access by providing access to essential financial services. This article examines the performance of ten SFBs in India over four years. The CAMELS model has been applied for performance analysis, which provides performance and ranking of various SFBs using the model’s six parameters: Capital adequacy, Asset quality, Management, Earning quality, Liquidity and Sensitivity. This study will help identify SFBs in financial distress, which will be helpful in timely action for their revival. Financial analysts and credit rating agencies can also use the comparative performance of these banks to frame their opinion or ratings. The common public, including customers and investors, can frame their short-term and long-term investment decisions based on the performance and ranking of these institutions. Furthermore, a proper assessment of these banks is needed as their good performance can ensure that formal credit availability reaches the grassroots level.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
