India's small finance banks rise as RBI lowers priority sector lending target

AU Small Finance Bank

23/06/2025 05:57

** Indian small finance banks climb between 1% and 3%

** Reserve Bank of India late on Friday reduced mandatory priority sector lending by small finance banks by 15 percentage points

** Aim lowered to 60% from 75% earlier

** ESAF Small Finance Bank EASF.NS leads rise among pack with its 2.7% gain

** Jana Small Finance Bank JANA.NS and Capital Small Finance Bank CPIA.NS up about 1% each

** AU Small Finance Bank AUFI.NS and Ujjivan Small Finance Bank UJJI.NS trading marginally higher

** Reduction in lending target offers "significant" relief to small finance banks, easing lending constraints and improving portfolio flexibility, ICICI Direct analysts say

(Reporting by Kashish Tandon in Bengaluru)

((Kashish.tandon@thomsonreuters.com))