Small Finance Bank Share List in India 2025

Are you looking to invest in the Indian financial sector? It may be worth putting your money in small finance banks. Such banks operating in untapped areas have identified excellent growth opportunities. They are at the forefront of financial inclusion in the year 2024. 

This blog revolves around identifying the best small finance banks in India so that one can understand why these might be a value addition to your portfolio. It is time to look at what they are yet to offer and the extent of their development.

Overview Of the Small Finance Bank (SFB) Industry in India

India’s small finance banks are quickly taking action by catering to the underserved parts of the economy, including small businesses, low-income households, and micro-entrepreneurs. Since their inception, SFBs have been an essential part of the financial ecosystem, propelled by the government’s financial inclusion initiative. By 2024, these banks had grown aggressively with a CAGR of over 25%, increasing their presence in both urban and rural areas.

Major players like AU Small Finance Bank, Equitas Small Finance Bank, and Ujjivan Small Finance Bank have displayed their strength and agility in serving the niche market by offering a bouquet of uniquely designed financial products. Although SFBs face some challenges related to asset quality risks and regulatory pressures, they still represent a significant growth opportunity. 

Small Finance Bank Share Based on Market Capitalization

The top Small Finance Bank stocks in 2025 are:

S.No.	Small Finance Bank Stocks
1	AU Small Finance Bank Ltd.
2	Equitas Small Finance Bank Ltd.
3	Ujjivan Small Finance Bank Ltd.
4	Jana Small Finance Bank Ltd.
5	Utkarsh Small Finance Bank Ltd.
6	ESAF Small Finance Bank Ltd.
7	Suryoday Small Finance Bank Ltd.
8	Capital Small Finance Bank Ltd.

The best small finance bank stocks have been listed in descending order based on their market capitalization in the table below:

Company	Market Capitalization (In crores)	Share Prices (In INR)	52 Week High Price (In INR)	52-Week Low Price(In INR)
AU Small Finance Bank Ltd.	47,160	634	813	554
Equitas Small Finance Bank Ltd.	9,307	81.8	116	74.6
Ujjivan Small Finance Bank Ltd.	8,537	44.1	63	40
Jana Small Finance Bank Ltd.	6,172	590	761	365
Utkarsh Small Finance Bank Ltd.	5,498	49.9	68.3	44.8
ESAF Small Finance Bank Ltd.	2,621	50.9	82.4	48
Suryoday Small Finance Bank Ltd.	2,088	196	220	142
Capital Small Finance Bank Ltd.	1,365	303	469	290

Read Also: IPO Alert – Capital Small Finance Bank

Best Small Finance Bank Stocks in India Based on Market Capitalization – An Overview

A brief overview of the best small finance bank stocks in India is given below:

1. AU Small Finance Bank Ltd.

AU Small Finance Bank was established as a NBFC named AU Financiers in 1996 and became a small finance bank in 2017. It is headquartered in Jaipur. It primarily serves the unserved and underserved sections of society. The bank offers various products such as savings and current accounts, fixed deposits, personal and business loans, and insurance. By March 2024, AU Small Finance Bank had over 800 branches across pan-India, serving over 8 million customers, predominantly in critical segments such as MSMEs and rural areas.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-11.12%	18.56%	10.36%

2. Equitas Small Finance Bank Ltd.

Equitas Small Finance Bank was incorporated in 1993 and headquartered in Chennai, India. Started as Equitas Micro Finance Ltd., Equitas became a bank in 2016. It is focused on providing financial services to the unserved and underserved segments of the economy, including micro, small, and medium-sized enterprises (MSMEs) and low-income groups at the household level. The major products of the bank are a variety of deposit schemes, personal loans, vehicle loans, business loans, and insurance. Equitas has grown to have over 850 branches and over 4 million customers as of March 2024.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
43.69%	13.57%	96.46%

3. Ujjivan Small Finance Bank Ltd.

Ujjivan Small Finance Bank was incorporated in 2017 when Ujjivan Financial Services, a microfinance institution set up in 2005, received an in-principle approval from the RBI to set up a small finance bank. This Bengaluru-based bank has been operating with a focus on low-income groups. The bank offers a plethora of products, including savings accounts, fixed deposits, and loans, including microloans, home loans, and SME loans. Ujjivan SFB has over 600 branches across India, serving around 6 million customers, and has assets under management of around ₹18,000 crores as of 2024.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
42.91%	75.14%	40.70%

4. Jana Small Finance Bank Ltd.

Janalakshmi Financial Services, one of the largest microfinance companies, began its journey in 2006. The company was granted the license to establish a small finance bank, and Jana Small Finance Bank commenced its operation in 2018. The bank focuses on financial inclusion through various products like savings accounts, fixed deposits, etc. It also provides multiple loans, including home loans, business loans, and microloans. Currently, Jana Small Finance Bank enjoys a significant presence with over 500 branches across India and a customer base of over 8 million. It manages assets worth over ₹12,000 crores as of 2024.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-8.35%	6.67%	6.83%

5. Utkarsh Small Finance Bank Ltd.

Utkarsh Small Finance Bank was set up in 2017 by Utkarsh Micro Finance, an organization established in 2009. The bank, based in Varanasi, resolves the issue of financial inclusion. It particularly serves the unserved and underserved sections in rural and semi-urban areas. Their products include savings accounts, fixed deposits, and lending. With more than 600 banking outlets and 4 million served customers, the bank manages assets worth about ₹10,000 crores as of 2024, emphasizing sustainable growth.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-56.83%	-37.38%	-37.38%

6. ESAF Small Finance Bank Ltd.

ESAF Small Finance Bank came into existence in 2017. Initially, it was an entity named ESAF Microfinance, which was founded in 1992. Headquartered in Thrissur, Kerala, ESAF Small Finance Bank’s core objective is to deliver appropriate, relevant, and readily available financial services to the underserved sections. With more than 600 branches across the country, ESAF provides several financial products, such as savings accounts, fixed deposit products, microloans, and SME loans. As of 2024, ESAF manages ₹16,000 crores of assets with more than 4 million customers and places high regard on financial inclusion and social responsibility.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-54.58%	-58.80%	-58.80%

7. Suryoday Small Finance Bank Ltd.

Suryoday Small Finance Bank was established in 2017, and its headquarters are in Navi Mumbai. The company focuses on financial inclusion. The products range from savings accounts and fixed deposits to microloans, housing loans, MSME loans, and others. As of 2024, the bank has 550 banking outlets that serve nearly 2 million customers and manage assets worth ₹4,500 crores.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-30.07%	-7.64%	-58.58%

8. Capital Small Finance Bank Ltd.

Formed in 2000, Capital Small Finance Bank was the first small finance bank to be converted from a local area bank. Based in Punjab, it runs more than 160 branches. The bank’s main business focus is retail deposits, microfinance, and MSME loans, and it is eyeing servicing the unserved segments of society. Capital Small Finance Bank provides savings accounts, term deposits, home loans, business loans, customer service, and financial inclusion. It manages over ₹ 6,000 crores of assets as of 2024.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-35.48%	-34.46%	-34.46%

Performance of Small Finance Bank Stocks 

1-year performance of the small finance bank stocks has been given in the table below:

Company	1 Year Return (%)
AU Small Finance Bank Ltd.	-14.01%
Equitas Small Finance Bank Ltd.	-2.03%
Ujjivan Small Finance Bank Ltd.	-10.89%
Jana Small Finance Bank Ltd.	60.27%
Utkarsh Small Finance Bank Ltd.	2.49%
ESAF Small Finance Bank Ltd.	-26.26%
Suryoday Small Finance Bank Ltd.	8.54%
Capital Small Finance Bank Ltd.	-30.21%

Key Performance Indicators 

Company	Net Interest Margin (%)	ROE (%)	Capital Adequacy Ratio (%)	TTM P/E (x)	P/B (x)
AU Small Finance Bank Ltd.	4.71	12.21	20.06	28.58	3.74
Equitas Small Finance Bank Ltd.	6.79	13.38	21.70	14.59	1.55
Ujjivan Small Finance Bank Ltd.	8.43	22.82	24.69	6.75	1.54
Jana Small Finance Bank Ltd.	6.50	18.71	20.31	8.23	1.73
Utkarsh Small Finance Bank Ltd.	7.88	16.73	22.57	10.41	1.85
ESAF Small Finance Bank Ltd.	9.08	17.07	23.27	7.32	1.06
Suryoday Small Finance Bank Ltd.	7.77	11.96	28.41	8.74	1.16
Capital Small Finance Bank Ltd.	3.71	9.31	27.39	12.28	1.15

Benefits of Investing in the Small Finance Bank Stocks

There are various benefits of investing in small finance bank stocks, a few of which are mentioned below- 

• High Growth Potential: Small finance banks are targeting the underserved segments of society, which can result in high growth in assets and number of customers, giving them ample growth opportunities.
• Financial Inclusion: Financial inclusion is one of the core constituents of any government program, and small finance banks are in a perfect position to grow.
• Tailored Financial Products: SFBs offer customized financial products to their customers, which makes them popular.

Factors to Consider Before Investing in Small Finance Bank Stocks

Before making any investment in small finance bank stocks, there are various factors to be taken into consideration-

• Asset Quality:  Analyze the NPAs and the risk management practices of the SFBs because they will lend more to higher-risk segments, affecting the quality of assets.
• Regulatory Environment: Investors must be aware of the rules and regulations to check whether the bank adheres to the RBI norms. Illegal activities will have a negative effect on the income and the business of the company.
• Growth and Profitability: Analyze the bank’s ability to maintain high growth in the face of existing competition and the changing economic environment.
• Management and Governance: Therefore, other things being equal, good governance supported by effective management is crucial in surmounting challenges in this segment. Management quality and the bank’s corporate governance system determine its future performance.
• Market Competition: Investors must evaluate competitor SFBs and microfinancing institutions to understand the bank’s market position and growth potential.

The Future of the Small Finance Bank Industry

Good future prospects are unfolding for the Small Finance Banks (SFB) industry in India, which is estimated to grow at nearly 18-20% CAGR over the next five years. Finance inclusion is expected to increase as SFBs focus on low-density areas such as Micro, Small, and Medium Enterprises and the rural population. SFBs may hold 5% of the overall banking assets in India by 2028.

This digital transformation would help small finance banks grow further, enabling them to offer a pleasant customer experience and operational efficiency. However, issues such as asset quality management, competition from other firms, and changing macroeconomic conditions will threaten profitability.

Read Also: List of Best Banking Stocks in India

Conclusion

The small finance banks offer a big investment opportunity in India due to the huge population not being served by the formal banking sector. Key leading performers in the sector, AU Small Finance Bank and Equitas Small Finance Bank, have been performing well, while other indicators point to sustainable growth. However, factors like asset quality, the regulatory environment, management quality, and experience need close inspection before investing. However, it is advisable to consult a financial advisor before investing.

Frequently Asked Questions (FAQs)