SMALL FINANCE BANKS

Key Operational Challenges: While they are allowed to operate like a bank, they need to ensure 75 per cent of their funds are used for priority sector lending (as against 40 per cent for scheduled commercial banks). Also, half the portfolio has to comprise loans of less than ` 25 lakh Differentiated Pitch: Leveraging technology along with diversified product offerings going beyond microfinance (Equitas and AU) or focus on select geographies like Utkarsh in North and RGVN in North East