Small Finance Banks Under RBI Scanner: 3-4 May Need to Raise Capital Amid Asset Quality Concerns
2025-02-27
moneycontrol.com
The Reserve Bank of India (RBI) is closely monitoring the capital position of small finance banks, with 3-4 lenders likely to be forced to shore up their buffer in the next 6-12 months due to asset quality issues. This move is aimed at ensuring the stability of the micro lending sector, which has been plagued by rising non-performing assets. As a result, these small finance banks may need to raise capital to maintain their regulatory requirements, with the RBI keeping a close eye on their financial health. Key factors such as capital adequacy ratio and asset quality will be under scrutiny, with financial stability and regulatory compliance being top priorities.
