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Small Banks Hire Big: SFBs Eye Universal Banking
23 Jan
Summary
- Small finance banks are hiring senior executives from larger banks.
- SFBs are preparing for a transition to universal banking licenses.
- The sector added 26,736 employees in 2025, an 18% workforce increase.
India's small finance banks (SFBs) are strategically intensifying their recruitment efforts, drawing senior talent from larger banks and non-bank financiers. This initiative is a key preparatory step for a contingent of SFBs aiming to transition to universal banking licenses.
The heightened demand for talent underscores a sector-wide readiness for more complex growth phases, emphasizing managerial depth alongside balance-sheet expansion. Banks including AU Small Finance Bank and Ujjivan Small Finance Bank are actively seeking executives for leadership roles.
This talent acquisition strategy reflects significant sector growth, with SFBs collectively adding 26,736 employees in 2025, an 18% surge in workforce. This expansion aims to meet regulatory requirements for universal banking, which include a minimum net worth of ₹1,000 crore and a satisfactory track record.
