Small Finance Banks Face Profitability Pressure in H2 FY2025 Due to Rising Costs
2025-01-14
Business Standard
The profitability of Small Finance Banks (SFBs) is expected to remain under pressure in the second half of FY2025, according to Manushree Saggar, Sector Head of Financial Sector Ratings at ICRA. Rising fund costs and credit costs are likely to impact the bottom line of SFBs, affecting their financial performance. With increasing competition in the financial sector, SFBs will need to adapt to the changing market conditions to maintain their profitability. Key factors such as interest rates, credit growth, and operational efficiency will play a crucial role in determining their success. As the financial sector continues to evolve, SFBs must navigate these challenges to stay ahead.
