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Top Small Finance Bank Stocks in India 2025

Small finance banks (SFBs) are specialised banks licensed by the Reserve Bank of India to expand financial access for underserved groups such as micro-enterprises, small businesses, and low-income households. These banks focus on smaller loan sizes, deeper regional reach, and customer segments that often remain outside the coverage of traditional banks. Here is a list of the best small finance bank stocks in India.

Top Small Finance Bank Stocks in 2025

Small Finance Stock Screener

Small Finance Stock Screener: Analyse & Filter Indian Stocks on Tickertape

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NameStocks (5)↓↓Sub-SectorSub-Sector↓↓Market CapMarket Cap↓↓Close PriceClose Price↓↓PE RatioPE Ratio↓↓1D Return1D Return↓↓1M Return1M Return↓↓6M Return6M Return↓↓1Y Return1Y Return↓↓PB RatioPB Ratio↓↓Return on EquityReturn on Equity↓↓ROCEROCE↓↓Dividend YieldDiv Yield↓↓Debt to EquityDebt to Equity↓↓Volatility vs NiftyVolatility vs Nifty↓
1.AU Small Finance Bank LtdAUBANKConsumer FinanceConsumer Finance71,731.6371,731.63960.70960.7034.0634.061.261.267.757.7533.4233.4260.7260.724.184.1814.1714.178.308.300.100.100.000.002.482.48
2.Ujjivan Small Finance Bank LtdUJJIVANSFBPrivate BanksPrivate Banks10,351.3910,351.3953.4053.4014.2614.26-1.11-1.114.694.6920.0020.0052.6652.661.701.7012.4212.429.349.34--0.000.002.812.81
3.Equitas Small Finance Bank LtdEQUITASBNKPrivate BanksPrivate Banks6,910.486,910.4860.5860.5846.9946.99-2.78-2.784.064.06-6.21-6.21-5.81-5.811.141.142.442.442.042.041.651.650.000.002.742.74
4.Jana Small Finance Bank LtdJSFBPrivate BanksPrivate Banks4,773.414,773.41443.60443.609.529.520.200.20-8.12-8.12-7.04-7.04-1.17-1.171.161.1613.0313.035.075.07--0.000.003.363.36
5.Utkarsh Small Finance Bank LtdUTKARSHBNKDiversified FinancialsDiversified Financials2,804.532,804.5315.7615.76118.33118.33-1.75-1.75-13.86-13.86-21.79-21.79-48.11-48.110.940.940.800.800.420.42--0.000.003.483.48
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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Sector: Small Finance Banks, Market Capitalisation: Sorted from highest to lowest.

Overview of Top Small Finance Bank Stocks

AU Small Finance Bank Ltd

AU Small Finance Bank is a retail-focused bank that offers savings accounts, deposits, loans, and digital banking services. It mainly serves individuals, small businesses, and underserved customers across urban, semi-urban, and rural areas.

Ujjivan Small Finance Bank Ltd

Ujjivan started as a microfinance company in 2005. It became a small finance bank on 1 February 2017 after receiving an RBI licence. The bank is based in Bengaluru and focuses on serving low-income households, small businesses, and first-time banking users.

Equitas Small Finance Bank Ltd

Equitas began as a microfinance institution in 2007. It received its small finance bank licence in 2016 and started operations on 5 September 2016. The bank is headquartered in Chennai and offers banking services to under-banked communities with a strong focus on digital banking.

Jana Small Finance Bank Ltd

Jana started as Janalakshmi Financial Services in 2006. It became a small finance bank on 28 March 2018. The bank operates from Bengaluru and provides savings accounts, group loans, small business loans, and other retail banking services.

Utkarsh Small Finance Bank Ltd

Utkarsh Small Finance Bank provides banking and lending services to low-income households, small businesses, and rural customers. It offers savings accounts, deposits, microloans, and affordable financial products designed for underserved communities.

What are Small Finance Bank Stocks?

Small finance bank stocks are shares of listed Small Finance Banks (SFBs) in India. These banks operate under a specialised RBI licence to provide banking services to underserved segments such as small businesses, micro-enterprises, and low-income households.

How to Invest in Small Finance Bank Stocks?

Investing in small finance bank stocks in India using Tickertape is a straightforward process. Tickertape is a powerful stock analysis and screening tool that helps you make informed investment decisions. Here’s how you can use Tickertape to invest in small finance bank stocks in India:

  1. Sign Up and Log In: You can create an account on the Tickertape or log in if you already have one.
  2. Search for “Small Finance Banks”: Go to Tickertape Stock Screener and set the “Sub-sector: Private Banks” filter and look for Small Finance Banks
  3. Use Filters: You can apply over 200 filters to get stocks sorted based on criteria like market cap, P/E ratio, or returns. You can create your own custom filter, in case your preferred parameters are not available. This can help you narrow down the top small finance banks in India.
  4. Analyse Stock Data: Tickertape provides comprehensive data on each stock, including financials, performance metrics, future projections, red flags, and more. You can review this data to assess each company’s health and potential in-depth.
  5. Add to Watchlist: You may keep track of potential investments by adding them to your watchlist.
  6. Invest Through Your Broker: Once you’ve decided on a stock, you can place a buy order through your brokerage account linked to Tickertape.

You can stay updated with each of your favourite stocks’ alerts and announcements with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Advantages of Investing in Small Finance Bank Stocks

Presence In Underserved Markets

Small finance banks operate in regions where larger banks have limited access and focus on microloans, small business loans and first-time borrowers, helping maintain steady loan demand.

Higher Net Interest Margins

These banks lend to higher-risk borrowers, allowing them to charge higher interest rates and maintain strong net interest margins that support earnings.

Diversified Deposit Base

Branch expansion and digital banking have helped SFBs grow retail deposits including savings accounts and fixed deposits, reducing funding costs and improving financial stability.

Secured Lending

Small finance banks are diversifying from unsecured microfinance loans to secured lending such as housing, MSME finance, gold and vehicle loans, which can improve asset quality.

Supportive Regulatory Environment

Recent RBI and government initiatives, including flexibility in priority sector lending norms and participation in credit-linked schemes, may support stability and growth.

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Risks of Investing in Small Finance Bank Stocks

Asset Quality Pressure

Repayment behaviour can be volatile in their borrower segments, and disruptions such as weather shocks or local slowdowns may increase NPAs.

Concentrated Borrower Profile

A significant share of lending goes to low-income households and micro-businesses, and financial stress in these groups can affect recoveries and provisioning needs.

Tough Competition

These banks compete with commercial banks, fintech lenders, NBFCs and microfinance firms, which may reduce margins and slow expansion.

Operational and Technology Risks

SFBs rely heavily on efficient systems to manage high-volume, low-ticket loans, and operational lapses or technology disruptions may create financial and reputational challenges.

Factors to Consider Before Investing in Small Finance Bank Stocks

Loan Book Mix

Microfinance, MSME loans, home loans and gold loans form the lending structure, and the balance of secured versus unsecured loans influences overall risk.

Asset Quality Trends

Gross and net NPAs reflect loan performance, and improving numbers may indicate strong underwriting and collections while rising NPAs may show stress.

Deposit Base and Funding Costs

The pace of deposit growth and the cost of funds influence long-term profitability and operational resilience.

Geographic Presence

Regional concentration may expose the bank to local risks such as climate events or regional economic slowdowns.

Regulatory Framework

SFBs operate under RBI regulations related to capital norms and lending requirements, and policy changes shape business flexibility and growth conditions.

Conclusion

Small finance banks occupy a unique space in India’s banking system, combining deep regional outreach with a focus on underserved borrowers. At the same time, their business models face structural challenges, including higher exposure to unsecured loans, region-specific concentration, and sensitivity to economic disruptions. That’s why investors must conduct their own research before making any decisions. Tools like the Tickertape Stock Screener, which offers more than 200 filters, help analyse financials, risk indicators, and business strength in greater detail.

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Frequently Asked Questions on Small Finance Bank Stocks

  1. What are small finance bank stocks?

    Small finance bank stocks are shares of RBI-licensed Small Finance Banks (SFBs) that are listed on the stock market. These banks focus on underserved segments such as micro-enterprises, small businesses, low-income households, and first-time borrowers.

  2. Is it good to invest in small finance bank stocks?

    Whether it is good to invest in small finance bank stocks depends on several factors, such as the bank’s asset quality, deposit strength, capital levels, geographic presence, and an individual’s financial thesis and risk tolerance. Since each SFB has a different risk profile, investors can use the Tickertape Stock Screener with 200+ filters to analyse these banks in detail before making any decision.

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  3. Which are the best small finance bank stocks in India?

    As of 25th November 2025, some of the top mining companies in India, as per market cap, include:
    1. Ujjivan Small Finance Bank Ltd
    2. Equitas Small Finance Bank Ltd
    3. Jana Small Finance Bank Ltd
    4. Suryoday Small Finance Bank Ltd
    5. ESAF Small Finance Bank Limited

    Disclaimer: Please do your own research or consult your financial advisor before investing.

  4. How to invest in small finance bank stocks?

    Here’s how you can invest in Small Finance Bank (SFB) stocks –
    1. Go to the Tickertape Stock Screener.
    2. Select the small finance banks
    3. Use 200+ filters to analyse SFB stocks based on financial ratios, asset quality, valuation metrics, and risk indicators as per your investment thesis.
    4. Review the filtered list and identify the banks that align with your risk appetite and return expectations.
    5. Once you shortlist the stocks, click ‘Place Order’ to proceed with investing.

    Disclaimer: Please do your own research or consult your financial advisor before investing.

  5. Are small finance bank stocks risky?

    SFB stocks tend to carry risk due to their exposure to unsecured loans, regional concentration, and sensitivity to economic shocks. Asset quality trends and portfolio mix play a major role in their performance.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.