Best Small Finance Bank Stocks in India: Q1 FY27
All 8 listed small finance banks compared on Q1 FY27 results — profits, NPAs, NIM, ROE, analyst targets, and FII/DII holding — ranked in one scorecard.
August 19, 2026 · 16 min read
In this post we compare the Q1 FY27 results of eight small finance banks and rank them on their financial and fundamental ratios. We also collected the TradingView analyst price target for each bank and combined everything into a single scorecard. We have previously covered how banks work and compared private sector banks, mid-cap banks, and public sector (PSU) banks on their Q1 FY27 results — this post completes the series by covering small finance banks.
What Is a Small Finance Bank and Why Do We Need Them?
Small finance banks (SFBs) were introduced around 2015 and are licensed by the Reserve Bank of India (RBI). They serve specific niches: small and mid-sized farmers, micro and small businesses, and low-income households. Their primary goal is financial inclusion — serving underserved segments that regular banks find it difficult to reach.
SFBs must follow strict rules:
- At least 50% of their loans must be small-ticket (up to ₹25 lakh).
- At least 75% of their loans need to go to the priority sector.
- They cannot set up subsidiaries.
- They typically offer higher interest rates on deposits to attract savers.
- They are not allowed to lend large amounts to big corporations.
- At least 25% of their branches have to be in unbanked rural areas.
- After five years of operation, an SFB can apply to convert into a full-service bank.
Why not just use NBFCs?
Unlike an NBFC, an SFB can accept demand deposits, issue checkbooks, and offer savings and current accounts — so its customers get a full bank account with deposit insurance of up to ₹5 lakh. This access to low-cost CASA deposits also lowers an SFB's cost of funds compared with an NBFC's, letting it lend at lower interest rates. In fact, many SFBs started out as NBFCs or microfinance companies — Ujjivan, Equitas, and AU are examples. The RBI's goal was to convert institutions that were already effective at reaching rural and small borrowers into full-fledged banks.
Net Profit — Q1 FY27
AU Small Finance Bank posted the highest net profit of the eight at ₹796 crore, followed by Ujjivan at ₹317 crore. Utkarsh remained in the red as it works through legacy microfinance stress.
| Bank | PAT (₹ Cr) | YoY | ROA | ROE |
|---|---|---|---|---|
| AU Small Finance | 796 | +37.0% | 1.7% | 15.6% |
| Ujjivan SFB | 317 | +206.7% | 2.2% | 18.2% |
| Equitas SFB | 184 | +182.1% | 1.18% | 11.8% |
| Jana SFB | 155 | +52.3% | 1.4% | 13.6% |
| Utkarsh SFB | -33.9 | +85.8% | -0.48% | -6.2% |
| ESAF SFB | 80.1 | +198.6% | 1.02% | 17.2% |
| Suryoday SFB | 75.2 | +113.1% | 1.6% | 14.5% |
| Capital SFB | 41 | +29.0% | 1.30% | 11.2% |
ROA and ROE are annualized for the quarter. Utkarsh's ROE is annualized on the Q1 FY27 loss; its FY26 ROE was -42%.
Profitability — ROA and ROE
Ujjivan leads on both ROA (2.2%) and ROE (18.2%) — the most profitable SFB of the quarter. AU (ROE 15.6%) and ESAF (ROE 17.2%) follow. Utkarsh is the laggard as elevated credit costs compress earnings.
Asset Quality — GNPA vs NNPA
Ujjivan has the cleanest book with NNPA of just 0.34%, followed by AU (0.76%) and ESAF (0.83%). Utkarsh (GNPA 6.09%) and Suryoday (GNPA 6.5%) carry the highest NPAs from the microfinance stress cycle, though both improved sharply year over year.
| Bank | GNPA | NNPA | PCR |
|---|---|---|---|
| AU Small Finance | 2.10% | 0.76% | 85%* |
| Ujjivan SFB | 2.2% | 0.34% | ~84% |
| Equitas SFB | 2.36% | 0.70% | 71.0% |
| Jana SFB | 2.24% | 0.85% | ~62% |
| Utkarsh SFB | 6.09% | 2.86% | 54.6% |
| ESAF SFB | 5.40% | 0.83% | 85.3% |
| Suryoday SFB | 6.5% | 1.2% | 81.8% |
| Capital SFB | 2.47% | 1.14% | 54.5% |
AU's PCR includes technical write-offs. Jana's PCR is an estimate. Suryoday's GNPA/NNPA include a CGFMU receivable of ₹134 Cr against its NNPA.
Net Interest Margin (NIM)
NIM separates the microfinance-led lenders from the secured-asset lenders. Ujjivan (8.5%), Jana (7.5%), Equitas (7.24%), and Suryoday (7.2%) earn high-yield microfinance and small-ticket secured income, while AU (5.9%) and Capital (4.21%) run lower-yield but safer secured books.
| Bank | NIM (Q1 FY27) | Yield on Advances | Cost of Funds |
|---|---|---|---|
| Ujjivan SFB | 8.5% | ~22% | ~7.0% |
| Jana SFB | 7.5% | ~16.4% | ~7.4% |
| Equitas SFB | 7.24% | 15.74% | 7.05% |
| Suryoday SFB | 7.2% | 16.2% | 7.5% |
| ESAF SFB | ~6.4% | 15.7% | ~7.1% |
| AU Small Finance | 5.9% | 13.7% | 6.48% |
| Utkarsh SFB | ~5.9% | ~10% | ~6.8% |
| Capital SFB | 4.21% | 10.9% | 5.6% |
ESAF's NIM is from its FY26 annual report; Utkarsh's NIM is an estimate (its yield and cost of funds are lower than peers). Microfinance yields are structurally higher because they embed higher credit risk and operating costs.
Capital Adequacy and CASA
Capital SFB has the strongest CASA franchise at 36.7%, reflecting its middle-income deposit base. AU's capital base is the largest in absolute terms on its ₹1.9 lakh crore balance sheet, though its CRAR of 18.9% is among the lowest in the group. ESAF has the strongest CRAR cushion at 23.86%. All eight banks are comfortably above the 15% regulatory minimum.
| Bank | CRAR | CASA |
|---|---|---|
| AU Small Finance | 18.9% | 29% |
| Ujjivan SFB | 20.4% | ~27% |
| Equitas SFB | 19.44% | 25% |
| Jana SFB | 20.2% | 19% |
| Utkarsh SFB | 17.44% | 24% |
| ESAF SFB | 23.86% | 23.9% |
| Suryoday SFB | ~23.5% | 21% |
| Capital SFB | 21.6% | 36.7% |
Ujjivan's CASA is an estimate from its ~27–28% historical level; Suryoday's CRAR is its Q1 FY27 Tier 1 + Tier 2 level. Values marked ~ are estimated.
Valuation — P/E and P/B
For banking stocks, P/B matters more than P/E. Suryoday is the cheapest at 0.78x book, followed by Capital (0.88x) and Utkarsh (0.89x). AU, as the market leader, trades at a premium of about 4.0x. Utkarsh and ESAF have no meaningful P/E because their trailing earnings are negative or negligible.
| Bank | CMP (₹) | Mkt Cap (₹ Cr) | P/E | P/B | Div Yield |
|---|---|---|---|---|---|
| AU Small Finance | 1,075 | 80,595 | 28.2 | 4.03 | 0.09% |
| Ujjivan SFB | 71.8 | 13,989 | 15.4 | 2.05 | 0.00% |
| Equitas SFB | 74.7 | 8,558 | 16.8 | 1.39 | 0.00% |
| Jana SFB | 571 | 6,045 | 15.9 | 1.36 | 0.00% |
| Utkarsh SFB | 13.9 | 2,479 | — | 0.89 | 0.00% |
| ESAF SFB | 41.9 | 2,172 | — | 1.21 | 0.00% |
| Suryoday SFB | 152 | 1,613 | 8.40 | 0.78 | 0.99% |
| Capital SFB | 288 | 1,311 | 8.70 | 0.88 | 1.74% |
Prices and ratios as of 18 August 2026 (NSE close, Screener.in). P/E is TTM; Utkarsh and ESAF are not meaningful on TTM P/E due to losses.
Balance Sheet and Growth — Q1 FY27
AU is by far the largest SFB with deposits of ₹1.58 lakh crore and advances of ₹1.44 lakh crore — bigger than the next three banks combined. Suryoday and Ujjivan grew the fastest.
| Bank | Deposits (₹ Cr) | Dep Growth | Advances (₹ Cr) | Adv Growth |
|---|---|---|---|---|
| AU Small Finance | 1,57,727 | +24% | 1,44,250 | +23% |
| Ujjivan SFB | 48,129 | +24.6% | 42,903 | +29% |
| Equitas SFB | 48,976 | +10% | 47,641 | +27% |
| Jana SFB | 35,756 | +21.5% | 37,612 | +25.7% |
| Utkarsh SFB | ~21,700 | +0.4% | ~19,400 | +10.6% |
| ESAF SFB | ~25,900 | +11.1% | ~22,400 | +19.4% |
| Suryoday SFB | 14,634 | +29.4% | 14,376 | +32.5% |
| Capital SFB | 10,596 | +16.3% | 9,074 | +22% |
Utkarsh's deposits and advances are FY26 levels (its Q1 FY27 release does not disclose growth); ESAF's are FY26 levels. Jana advances include the IBPC and securitization book; Equitas advances include IBPC, securitization, and direct assignment.
Technicals, Analyst Targets & RSI
| Bank | CMP (₹) | Target (₹) | Upside | RSI (W) |
|---|---|---|---|---|
| AU Small Finance | 1,075 | 1,110 | +3.2% | 59.9 |
| Ujjivan SFB | 71.8 | 83.84 | +16.7% | 66.8 |
| Equitas SFB | 74.7 | 87.19 | +16.7% | 55.8 |
| Jana SFB | 571 | 600 | +5.0% | 67.1 |
| ESAF SFB | 41.9 | — | — | 68.1 |
| Suryoday SFB | 152 | 280 | +84.5% | 46.2 |
| Utkarsh SFB | 13.9 | 20 | +44.0% | 46.9 |
| Capital SFB | 288 | 423.65 | +47.0% | 53.7 |
Targets are the TradingView one-year average analyst price. RSI is the weekly chart reading. ESAF has no analyst target.
On the charts, most of these banks are consolidating after a strong run. AU (RSI 59.9) and Ujjivan (RSI 66.8) have nearly doubled over the last 15 months and are holding near their resistance levels, with one-year TradingView targets of ₹1,110 and ₹83.84 respectively — about 3.2% and 16.7% above their current prices. Equitas (RSI 55.8) broke out of ₹72 after a year of consolidation and is now retesting that level against a target of ₹87.19. Jana (RSI 67.1) is consolidating near resistance with a modest 5% target upside at ₹600. Among the recovering names, ESAF (RSI 68.1) has no analyst target but has doubled off its ₹20 base since early 2026, while Suryoday (RSI 46.2) has pulled back about 25% from its ₹215 resistance yet carries the highest target upside of the group at ₹280 (+84.5%). Utkarsh (RSI 46.9) and Capital (RSI 53.7), both in post-IPO downtrends, have built bases at ₹10 and ₹225 with targets of ₹20 (+44%) and ₹423.65 (+47%) respectively.
FII & DII Holding — Jun 2025 vs Jun 2026
Institutional flows tell the story behind these charts. Between June 2025 and June 2026, FIIs rotated out of the two largest banks (AU, Ujjivan) and into the beaten-down names (Utkarsh, Jana), while DIIs kept buying Ujjivan and Equitas aggressively.
| Bank | FII Jun 2025 | FII Jun 2026 | Change | DII Jun 2025 | DII Jun 2026 | Change |
|---|---|---|---|---|---|---|
| AU Small Finance | 37.68% | 35.98% | -1.70 pp | 28.86% | 32.81% | +3.95 pp |
| Ujjivan SFB | 19.55% | 16.81% | -2.74 pp | 16.82% | 33.45% | +16.63 pp |
| Equitas SFB | 16.30% | 15.70% | -0.60 pp | 47.13% | 51.25% | +4.12 pp |
| Jana SFB | 0.28% | 4.01% | +3.73 pp | 16.03% | 15.31% | -0.72 pp |
| Suryoday SFB | 4.68% | 5.35% | +0.67 pp | 5.93% | 5.47% | -0.46 pp |
| Utkarsh SFB | 1.85% | 11.90% | +10.05 pp | 2.78% | 9.54% | +6.76 pp |
| Capital SFB | 1.34% | 0.59% | -0.75 pp | 31.50% | 27.48% | -4.02 pp |
pp = percentage points. ESAF is excluded from the change table because its historical quarterly data is incomplete; its current holding is FII 0.31% / DII 3.80%.
Shareholder Base vs Market Cap
Smaller banks have far more shareholders per rupee of market cap — a rough proxy for retail ownership intensity and, at times, volatility.
| Bank | Market Cap (₹ Cr) | Shareholders | Shareholders per ₹1,000 Cr |
|---|---|---|---|
| Utkarsh SFB | 2,479 | 2,79,233 | ~112,600 |
| Suryoday SFB | 1,613 | 89,688 | ~55,600 |
| Ujjivan SFB | 13,989 | 7,67,649 | ~54,900 |
| ESAF SFB | 2,172 | 1,07,631 | ~49,600 |
| Capital SFB | 1,311 | 63,826 | ~48,700 |
| Equitas SFB | 8,558 | 3,69,493 | ~43,200 |
| Jana SFB | 6,045 | 49,932 | ~8,300 |
| AU Small Finance | 80,595 | 1,62,894 | ~2,000 |
Shareholder counts are as of June 2026. Shareholders per ₹1,000 Cr = number of shareholders ÷ (market cap in ₹ Cr ÷ 1,000).
Small Finance Bank Rankings — Q1 FY27 Scorecard
How the score is calculated
Each bank is ranked 1–8 on every metric (best = 8, worst = 1). Lower is better for P/B, P/E, GNPA, and NNPA; higher is better for the rest. The overall score (max 96) is the sum of five pillars: Valuation (P/B + P/E, max 16), Profitability (ROA + ROE + NIM, max 24), Asset Quality (GNPA + NNPA + PCR, max 24), Capital (CRAR + CASA, max 16), and Growth (Deposits + Advances, max 16). Utkarsh and ESAF have no meaningful P/E, so their valuation pillar is capped at 8.
| Rank | Bank | Val (16) | Prof (24) | AQ (24) | Cap (16) | Grw (16) | Overall (96) |
|---|---|---|---|---|---|---|---|
| 1 | Ujjivan SFB | 6 | 24 | 21 | 11 | 14 | 76 |
| 2 | Suryoday SFB | 14 | 16 | 8 | 9 | 16 | 63 |
| 3 | AU Small Finance | 2 | 16 | 21 | 9 | 10 | 58 |
| 4 | Jana SFB | 7 | 16 | 13 | 5 | 10 | 51 |
| 5 | ESAF SFB | 5 | 13 | 16 | 11 | 5 | 50 |
| 6 | Equitas SFB | 5 | 12 | 16 | 8 | 8 | 49 |
| 7 | Capital SFB | 12 | 7 | 8 | 14 | 7 | 48 |
| 8 | Utkarsh SFB | 6 | 4 | 5 | 5 | 2 | 22 |
Why does Ujjivan beat AU — and why is AU only #3? This scorecard ranks the stock, not the business. Ujjivan tops it on profitability (ROE 18.2%), asset quality (NNPA 0.34%), and a P/B at roughly half of AU's, while AU's premium valuation (P/B 4.03x, P/E 28.2x) drags it to #3 despite being the bigger, safer business. Suryoday ranks second on its cheap valuation (0.78x book) and the fastest growth in the group. A quality-weighted ranking would favor AU; this value-and-momentum scorecard favors Ujjivan and Suryoday instead.
Conclusion
Small finance banks are the highest-yield, highest-risk corner of Indian banking. Ujjivan leads on profitability and asset quality, while AU remains the largest and safest franchise. Suryoday offers the best value and highest analyst upside, with FIIs quietly building positions in beaten-down names like Utkarsh and Jana. The sector's recovery is clearly underway, but microfinance stress still weighs on the weaker books.
References
- Screener.in — Small Finance Bank Stock Data and Peer Comparison
- AU Small Finance Bank Q1 FY27 Investor Presentation
- Ujjivan SFB Q1 FY27 Investor Presentation
- Equitas SFB Q1 FY27 Investor Presentation
- Jana SFB Q1 FY27 Investor Presentation
- Utkarsh SFB Q1 FY27 Financial Results — BSE
- ESAF SFB Q1 FY27 Financial Results — BSE
- Suryoday SFB Q1 FY27 Investor Presentation
- Capital SFB Q1 FY27 Investor Presentation
- TradingView — Analyst Price Targets
- Reserve Bank of India — Small Finance Banks
All numbers from Q1 FY27 earnings presentations, press releases, and BSE filings. Stock prices, P/E, P/B, and shareholding from NSE / Screener.in (18 August 2026 close). Analyst targets from TradingView. Values marked ~ or * are computed estimates where the bank does not disclose the metric.
This analysis is for educational purposes only and does not constitute investment advice. Please consult a SEBI-registered investment adviser before making any investment decision.
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- #AU Small Finance Bank
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Frequently asked questions
Which small finance bank topped the Q1 FY27 scorecard?
Ujjivan Small Finance Bank tops our Q1 FY27 scorecard with the highest NIM (8.5%), ROA (2.2%), ROE (18.2%), and the cleanest book (NNPA 0.34%), followed by Suryoday (cheapest at 0.78x book, fastest growth) and AU (largest profit and franchise). AU is the stronger business, but Ujjivan scores higher on current stock metrics. This is not investment advice.
Which small finance bank has the best asset quality in Q1 FY27?
Ujjivan has the cleanest book overall (GNPA 2.2%, NNPA 0.34%), followed by AU (GNPA 2.10%, NNPA 0.76%). Capital SFB (GNPA 2.47%) and Equitas (GNPA 2.36%) also carry sub-2.5% GNPA. Utkarsh and Suryoday are still working through microfinance stress (GNPA 6.09% and 6.5%).
Which small finance bank has the highest analyst upside?
Suryoday has the highest TradingView analyst upside at about +84.5% (target ₹280 vs ₹152), followed by Capital SFB at +47% (target ₹423.65) and Utkarsh at +44% (target ₹20). ESAF has no analyst target. This is not investment advice.
Where did FIIs and DIIs increase their stake the most?
Between Jun 2025 and Jun 2026, FIIs increased their stake the most in Utkarsh (+10.05 pp to 11.90%) and Jana (+3.73 pp to 4.01%). DIIs increased the most in Ujjivan (+16.63 pp to 33.45%) and Utkarsh (+6.76 pp to 9.54%), while cutting most in Capital (-4.02 pp).
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