Three small finance banks demonstrated superior operational performance in the June 2026 quarter, with Ujjivan Small Finance Bank leading growth at 28.9% year-on-year to ₹42,903 crore, driven by 54% growth in SME loans and 249% rise in gold loans. Equitas Small Finance Bank achieved 26.7% growth to ₹47,641 crore, while Jana Small Finance Bank recorded 24.7% advance growth to ₹34,699 crore. According to The Financial Express, these banks focus on high-margin loans including gold loans, SME loans, and micro-finance loans in their regional operations. Ujjivan SFB has 814 branches across 26 states and union territories compared to 752 branches previously, while Equitas SFB operates 1,063 branches across 16 states and 2 union territories.
The small finance banks significantly outperformed AU Small Finance Bank in net interest margins, with Ujjivan SFB achieving 8.5% NIMs compared to AU's 5.9%, while Equitas SFB recorded 7.24% versus AU's 5.9%. Jana SFB reported 7.5% NIMs versus AU's 5.9%. As reported by The Financial Express, this performance is attributed to their focus on high-margin loans in priority sectors, with 75% of credit required for priority sector loans compared to 40% for universal commercial banks. Ujjivan SFB's NIMs improved from 7.7% a year earlier, while Equitas SFB's NIMs increased from 6.37% previously. AU Small Finance Bank has NIMs of 5.9% compared to 5.4% a year earlier.
The three small finance banks trade at significant discounts to AU Small Finance Bank, with Ujjivan SFB at 2.1x price-to-book value, Equitas SFB and Jana SFB both at 1.4x price-to-book value, while AU Small Finance Bank trades at 4.1x. According to The Financial Express, this represents a 48%-66% discount to AU Small Finance Bank valuations. Ujjivan SFB reported a 206% jump in net profit to ₹316.5 crore, while Equitas SFB turned profitable with ₹183.6 crore net profit versus a ₹223.76 crore loss previously. Jana SFB achieved 53.5% growth in net profit to ₹155.2 crore. AU Small Finance Bank reported 37.2% growth in net profit to ₹796 crore with a 30.4% decline in provisions.
Ujjivan SFB ended broadly flat at ₹72 near its 52-week high of ₹73.9, while Equitas SFB closed 0.5% lower at ₹76.6 near its 52-week high of ₹83.8. Jana SFB gained 3.4% to ₹581.5 near its 52-week high of ₹606.5. As reported by The Financial Express, asset quality remained strong with Ujjivan's net NPAs at 0.34% versus 0.7% previously, and AU Small Finance Bank maintained 0.76% net NPAs. Equitas SFB's net NPAs improved to 0.7% from 0.98% a year earlier, while Jana SFB's net NPAs remained stable at 0.9% versus 0.94% previously. Ujjivan SFB's provisions declined 43% year-on-year to ₹127.3 crore, contributing to its strong profitability.
