MUMBAI : Small finance banks (SFBs) in India are expected to face broad delinquencies across loan portfolios amid the turmoil caused by the second wave of the pandemic, analysts said.Such banks are mandated by the Reserve Bank of India (RBI) to promote financial inclusion by serving the unbanked sections such as small businesses, small and marginal farmers, and micro and small industries and unorganized entities, which are one of the worst-affected segments.
Several SFBs also did aggressive lending in the past two quarters, analysts said.The provision coverage ratio (PCR) of three listed banks—Equitas Small Finance Bank Ltd, Ujjivan Small Finance Bank Ltd and AU Small Finance Bank Ltd—stood at less than 60% of total bad assets at the end of.