Suryoday SFB board approves ₹500 Cr raise to fund pivot away from microfinance

Suryoday Small Finance Bank's board has approved a ₹500 crore fundraise, split into ₹300 crore of equity and ₹200 crore of debt, according to the announcement.

The move comes as India's Small Finance Banks look to reduce their reliance on unsecured microfinance loans, historically the core of the SFB model, offering small, uncollateralized loans to rural and semi-urban borrowers at high margins but high risk.

The RBI is strictly monitoring unsecured lending, and default risk in the microfinance sector remains a persistent concern, pushing SFBs toward a strategic pivot.