The banks have seen their asset quality deteriorate due to the pandemic, but high capital buffers and lower cost of funds should help cushion the sector
Illustration: Chaitanya Surpur
Kheda, an hour away from Ahmedabad, has for long been a testing ground for Fincare Small Finance Bank. Kiran Babubhai Chauhan, 42, and his wife Rina, 40, low-income farmers in Parsantaj village in Kheda district, were keen to boost their income but lacked the means to do so. In 2009 Chauhan started borrowing from Fincare, when it was still a microlender (Disha Microfin). The Chauhans started small, with a Rs8000 loan in 2009 for dairy farming. They now borrow Rs45,000 a year.