While each small finance bank (SFB) has a different tagline to capture customers’ attention, they will also have a common one—“Small Banks: Empowering Big Dreams”— to highlight the success of their business model to all stakeholders.

Uma Shankar Paliwal, CEO, Association of Small Finance Banks of India (ASFBI), observed that over the last seven years, SFBs have given a good account of themselves, fulfilling the purpose—to meet the financial needs of the marginalised sections of society—for which they were allowed to be set up by RBI.

These niche banks are required to lend at least 75 per cent of their total advances to priority sectors—agriculture and allied activities; micro, small and medium enterprises; education; housing; and others. Further, at least 50 per cent of their loan portfolio should comprise loans and advances of up to ₹25 lakh.

Ten SFBs commenced operations in the 2016-2017. In 2021, Shivalik Mercantile Co-operative Bank transitioned to become a SFB. In 2021, Unity SFB was given a license on the condition that it takes over the fraud-hit Punjab & Maharashtra Co-operative Bank.

“Now it is time to announce to the world through a campaign that the objectives for which SFBs were set up—offering credit to micro and small enterprises, agriculture and providing banking services in unbanked and under-banked regions in the country—have been met.

“So, the tagline “Small Banks: Empowering Big Dreams” reflects the philosophy of all 12 SFBs,” Paliwal said.

Each SFB has its own tagline. For example, Equitas SFB has “Beyond Banking” as its tagline, ESAF SFB (Joy of Banking), Jana SFB (‘Likho Apni Kahani’/‘Write Your Destiny’) and Suryoday SFB (A Bank of Smiles).

Banking experts said that just as the Association of Mutual Funds of India’s “Mutual Fund Sahi Hai” campaign kindled retail investors’ interest in mutual funds, SFBs’ campaign, under the aegis of ASFBI, with the common tagline Small Banks: Empowering Big Dreamss”, could back up their individual efforts to garner low-cost current account, savings account (CASA) deposits. It could also help them with capital raising.

As at March-end 2023, high cost term deposits constituted about 68 per cent of SFBs’ total deposits of ₹1,91,372 crore. The balance 32 per cent were CASA deposits.

In its latest “Report on Trend and Progress of Banking in India”, RBI noted that SFBs serve a critical role in delivering credit to under-banked segments. However, many SFBs have low CASA deposits and a greater reliance on bulk term deposits, often acquired at higher rates, especially from co-operative banks.