A Study on Financial Analysis of Small Finance Banks with Special Reference to AU Small Finance Bank and Ujjivan Small Finance Bank

Small Finance Banks (SFBs) were introduced in India with the objective of promoting financial inclusion by providing basic banking services to unserved and underserved sections of society. These banks focus primarily on small businesses, marginal farmers, micro-enterprises, and low-income households. The present study aims to analyse and compare the financial performance of AU Small Finance Bank and Ujjivan Small Finance Bank using ratio analysis. The study is based on secondary data collected from annual reports for four financial years from 2016–17 to 2019–20. Liquidity, profitability, leverage, and market value ratios have been applied to assess financial efficiency. The findings indicate that AU Small Finance Bank demonstrates stronger profitability and solvency, whereas Ujjivan Small Finance Bank performs better in managing non-performing assets. The study concludes with suitable suggestions to improve financial sustainability.