Small finance banks are strengthening their risk management. They plan to reduce unsecured loans and boost secured lending like vehicle and housing loans. Credit guarantee schemes will cover more microfinance loans. This strategy aims to prevent asset quality issues. Banks like ESAF, Suryoday, Ujjivan, and Utkarsh are implementing these changes to ensure stability and growth.
Source: After asset quality hit, small finance banks to sharpen risk controls for 2026
