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The Economic Times

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Gold loans power Small Finance Banks' growth as microfinance asset quality weakens

Small Finance Banks are shifting focus to secured loans like gold loans. This move aims to stabilize their financial health and earnings. The unsecured microfinance sector continues to face high bad loan ratios. This strategic pivot is happening as regulators encourage diversification. Some larger banks are also growing their microfinance business. This change is crucial for long-term stability and growth.

11 May 2026 12:53 am